American Airlines (AAL) on Friday reported first-quarter profit above analysts' forecasts, though lowered its guidance as it continues to struggle with cancellations and other costs related to the grounding of its fleet of Boeing (BA - Get Report) MAX 8 jets.
The Fort Worth, Texas-based carrier reported net income of $185 million, or 41 cents a share, vs. $159 million, or 34 cents a share in the same period a year ago. Excluding special items related to taxes, fleet restructuring costs and other expenses, per-share earnings were 52 cents, the company said.
Analysts polled by FactSet had been expecting earnings of 50 cents.
Operating revenue for the quarter was $10.6 billion, matching analysts' forecasts and slightly higher than the $10.4 billion the company registered in the first quarter of 2018.
American said it canceled approximately 1,200 flights in the first quarter, and that It has also removed all 737 MAX flying from its flight schedule through August 19 - roughly 115 flights per day, the company said.
99 bottles of beer on the wall? How about 1.4 million on the ground and in the air! ��April 7, 2019
"In aggregate, the company estimates that these grounded aircraft and associated flight cancellations impacted its first quarter pre-tax income by approximately $80 million," the company said.
The American fleet currently includes 24 737 MAX 8 aircraft with an additional 76 aircraft on order.
The company also reduced its per-share guidance for the full year, saying it now expects per-share earnings in the range of between $4 and $6.
Shares of American fell 1.1% to $33.04 on Friday.