American Airlines Slashes Outlook; Shares Tumble

American Airlines (AAL) cut its outlook late Tuesday and said its chief commercial officer, Vasu Raja, will leave in June. AAL stock tumbled late, with several other airline stocks retreating, including United and Delta.


American Air now expects second-quarter earnings per share of $1-$1.15 vs. its prior target of $1.15-$1.45. It sees unit revenues down 5%-6% vs. a year earlier. Previously, it expected a 1%-3% decline.

The carrier said Stephen Johnson, vice chairman and chief strategy officer, will assume Raja’s responsibilities while leading a search for a new CCO.

American Airlines Stock

American Airlines stock tumbled 7.9% after hours to 12.38, which would be a 2024 low. Shares fell 2.9% to 13.44 on Tuesday, undercutting the 200-day line.

United Airlines (UAL) gave up 2% in late trade, signaling a move to the 50-day. Shares fell 2.1% to 50.64 on Tuesday, their six straight loss. A recent UAL stock breakout from a 54.67 buy point failed.

Delta Air Lines (DAL) retreated 2% overnight. Shares sank 3% to 50.28 on Tuesday. DAL stock is set to test the 50-day line and a 48.99 handle buy point.

Southwest Airlines (LUV) slipped 3%. Shares are below all their moving averages. LUV stock fell 1.2% to 26.52 on Tuesday.

Please follow Ed Carson on  Threads at @edcarson1971 and X/Twitter at @IBD_ECarson  for stock market updates and more.


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