American Airlines' stock tumbled 5.14% in pre-market trading on Thursday, following the release of its financial outlook and quarterly results.
The plunge comes as the company provided a third-quarter adjusted earnings per share (EPS) outlook of USD -0.7 to -0.1, which significantly missed the Ibes estimate of USD 0.28. This disappointing profit forecast overshadowed the company's positive revenue guidance of 16-19% growth for Q3 and news that it delivered its highest quarterly revenue in company history.
Further pressure on the stock came from the company's reported second-quarter fuel expenses, which increased by over $2.20 billion, representing an 83% year-over-year rise. The combination of a weak earnings outlook and substantially higher operating costs appears to have driven the sell-off in pre-market trading.