On July 23, American Airlines fell 7.1% in regular trading, trading at $13.625/share, with turnover of $153 million.

The decline was triggered by the company's Q2 earnings release. While revenue reached a record $16.735 billion, beating the $16.707 billion estimate, and adjusted EPS of $0.15 exceeded the $0.03 consensus by 400%, surging fuel costs severely eroded profitability. Q2 fuel expenses rose $2.2 billion year-over-year, and the company now faces approximately $6 billion in full-year fuel cost headwinds.

The company issued full-year adjusted EPS guidance of a $0.65 loss to $0.65 gain, implying mere breakeven at the midpoint versus the FactSet estimate of $0.61. Q3 guidance of a $0.10 to $0.70 per-share loss dramatically missed the market expectation of $0.31 profit. The CFO noted that since early July alone, Q3 fuel cost projections have risen over $700 million, with an additional $1.6 billion increase expected for the remainder of the year.

Within the Airlines sector, peers also declined: United Airlines down 3.48%, Delta Air Lines down 2.47%, Southwest Airlines down 3.40%, JetBlue Airways down 4.15%.

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