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(Sharecast News) - American Airlines' share price rose on Thursday despite the company lowering its profit forecasts on the back of an additional $4bn in fuel costs, as first-quarter results revealed that revenues rose to a record high.
The carrier, which just last week quashed speculation about a potential merger with larger peer United Airlines, reported revenues of $13.9bn for the first three months of the year, up from $12.6bn the year before.
The company reported an adjusted net loss of $267m for the quarter, 30.8% lower than the $386m loss reported the year before. Adjusted loss per share shrank to $0.40 from $0.59 previously.
Looking ahead, the firm said that midpoint of its second-quarter adjusted earnings guidance would represent a breakeven performance, while revenues are expected to rise 13.5-16.5%.
For 2026 as a whole, its adjusted EPS target was cut to a range of -$0.40 to +$1.10, with the midpoint being flat on 2025, compared with earlier expectations of a $1.70-2.70 profit.
However, according to analysts, the market was looking for a bigger downgrade to full-year expectations, with consensus pointing to a $0.65 loss.
The stock was up 3.4% at $11.90 by 1508 BST.
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