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(Sharecast News) - American Airlines shares fell sharply on Thursday after the carrier cut its full-year earnings outlook, overshadowing record second-quarter revenue and better-than-expected adjusted earnings.
The airline reported second-quarter revenue of $16.7bn, up 16.3% from a year earlier and the highest quarterly revenue in the company's history.
American said that it was able to offset nearly half of the $2.2bn increase in fuel expenses - which were 83% higher than the year before - with higher air fares.
GAAP net income dropped to $71m, from $599m a year earlier, while adjusted net income fell to $100m from $628m. Adjusted earnings per share of 15cents still beat the 3cents-a-share consensus forecast.
Looking ahead, the company guided to a third-quarter adjusted loss per share of between $0.10 and $0.70, and full-year adjusted EPS of -$0.65 to +$0.65.
This was downgraded from a previous range of -$0.40 to +$1.10, reflecting a sharp increase in expected fuel costs despite continued strength in demand and revenue generation.
"American delivered year-over-year revenue growth of more than 16% in the second quarter, exceeding our initial expectations and continuing the momentum we've built across the business," said chief executive Robert Isom.
The stock was down 7.4% at $13.70 by 1610 BST.
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