American Airlines’ (NASDAQ:AAL) said its third-quarter earnings came in slightly ahead of Wall Street estimates, but revenues just missed forecasts and the financial impact from the Boeing (NYSE:BA) 737 Max grounding continued to grow.
The past three months were challenging for the Fort Worth-based airline. In addition to the Max grounding, the airline suffered operational problems that have forced its customer service team to call travelers to apologize and offer compensation such as frequent flyer miles for the disruptions.
The airline has accused the unions representing its mechanics of an intentional slowdown to gain leverage in contact talks, accusations the unions have denied.
American’s net income rose more than 14% to $425 million from a year ago on revenue of $11.91 billion, which was slightly lower than estimates.
American slightly lowered its full-year earnings forecast by 50 cents at the top end to a forecast range of $4.50 and $5.50.
The quarter’s "results should have been better," CEO Doug Parker said in an earnings release.
"Our third-quarter was impacted by the continued grounding of the Boeing 737 MAX and the operational challenges resulting from ongoing labor contract negotiations. These challenges affected our customers, our shareholders and our team members, who we thank for their hard work and perseverance."
Adjusted earnings per share came in at $1.42, above the $1.40 analysts expected.
Shares opened Thursday up $1.05, or 3.7%, to $29.34
Related Stories
