American Airlines Q3 deserves down by almost 50% due to high fuel costs

Higher fuel costs hit third quarter profits on American Airlines by almost half, and the company said it would react by slowly growing and cutting unprofitable aircraft.

The US said Thursday that it expects an important revenue target per seat to rise in the fourth quarter.

The shares, which have been hit this year, rose in trade before the opening bell.

American Airlines Group Inc. received $ 341 million, down 48 percent from the previous year. Except non-recurring items, US earned $ 1.13 per share, which corresponds to the forecast of 16 analysts in a FactSet survey.

Revenues increased by 5 percent to $ 1[ads1]1.56 billion, a company record, even with a $ 50 million loss from September aircraft canceled under the hurricane of Florence.

However, the revenue increase was flooded by a jump in fuel costs of more than 40 percent.

CEO Doug Parker said the company would reduce its planned growth, cancel unprofitable flights, delay taking new aircraft and administer other costs. Americans expect to reduce capital expenditures by $ 1.2 billion by delaying delivery of 22 new Airbus jets over the next three years.

Americans also expect to increase revenue by moving as installing more seats that set higher rates on multiple aircraft used for international aircraft. "We are confident that these actions will return Americans to both revenue surpluses and earnings growth in 2019 and beyond," said Parker.

US estimates that a central revenue target per seat will increase by between 1.5 percent and 3.5 percent in the fourth quarter.

Stocks were up $ 1.04, or 3.4 percent, to $ 31.38, in early trading. They started the day down 42 percent, the worst athlete among the big American airlines.

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