American Airlines (AAL) has posted a third-quarter loss and lowered its profit forecast for the remainder of this year.
The company reported that it lost $545 million U.S., or $0.83 U.S. a share, in Q3, which was down from a profit of $483 million U.S., or $0.69 U.S. a share, a year earlier.
Revenue during Q3 totaled $13.48 billion U.S. versus $13.52 billion U.S. that was the consensus expectation of analysts who cover the airline.
The world’s largest carrier blamed the poor results largely on higher fuel prices and an expensive new labour agreement it signed with its pilots’ union.
Looking ahead, American Airlines said that it now expects to earn between $2.25 U.S. and $2.50 U.S. a share for all of this year.
The new guidance is below previous forecasts for earnings of $3 U.S. to $3.75 U.S. a share, but largely in line with analysts’ consensus expectations.
The company said that it foresees full-year operating margins of 7%, down from a previous forecast for margins of 10%.
In August of this year, American Airlines signed a new contract with its 15,000 pilots that provides them with more than $9 billion U.S. of additional compensation and benefits.
The price of crude oil has been steadily rising in recent months and is now back around $90 U.S. a barrel. Fuel prices are one of American Airlines’ biggest expenses.
The stock of American Airlines has declined 19% over the last 12 months and trades at $11.36 U.S. per share.