American Airlines shares tumble on more cautious 4Q outlook

first_imgFORT WORTH, Texas — Airline stocks are falling as American Airlines says fourth-quarter revenue and full-year profit will be lighter than expected.American’s stock fell 10.9 per cent before partially recovering.American said Thursday that revenue for each seat flown one mile, a measure of pricing power, will rise about 1.5 per cent over the previous fourth quarter. That’s about 1 percentage point less than American had been forecasting.Added to recent comments by Delta, American’s report raises concern among investors that airlines are discounting too many seats because of cheaper fuel.American is cutting its estimate of 2018 earnings per share to between $4.40 and $4.60, down from its earlier forecast of $4.50 to $5 per share.In late-morning trading, shares of American Airlines Group Inc. were down $2.72, or 8.1 per cent, to $30.70.The Associated Presslast_img