American Airlines cut its outlook late Tuesday and said its chief commercial officer, Vasu Raja, will leave in June. AAL stock tumbled. United Airlines rose modestly as it guided in line.
American Air now expects second-quarter earnings per share of $1-$1.15 vs. its prior target of $1.15-$1.45. It sees unit revenues down 5%-6% vs. a year earlier. Previously, it expected a 1%-3% decline.
The carrier said Stephen Johnson, vice chairman and chief strategy officer, will assume Raja's responsibilities while leading a search for a new CCO.
Raja had led an effort to scale back reliance on third-party booking sites and agencies, focusing on direct sales. That effort, which involving cutting most of American's sales staff, didn't work out.
American Airlines Stock
American Airlines stock 15.1% to 11.41 Wednesday to 12.26, a 2024 low. Shares fell 2.9% to 13.44 on Tuesday, undercutting the 200-day line.
United Airlines
United Airlines said it still expects Q2 adjusted EPS of $3.75-$4.25. That's roughly in line with analyst views, though the $4 midpoint is fractionally below the $4.02 consensus.
United Airlines stock rose 2.35% to 51.83, fighting back from an early drop below the 50-day line. Shares fell 2.1% on Tuesday, their sixth straight loss. A recent UAL stock breakout from a 54.67 buy point failed.
Other Carriers
Delta Air Lines retreated 0.8% to 49.90, but rebounded from testing the 50-day line and a 48.99 handle buy point. Shares sank 3% on Tuesday.
Southwest Airlines slipped 3.8% to 25.51. Shares are below all their moving averages. LUV stock fell 1.2% on Tuesday.
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