The largest U.S. airline by traffic hiked its fuel cost outlook by 10 cents per gallon for the second quarter.
American now expects between $1.94 to $1.99 per gallon, up from prior guidance of $1.84 to $1.89 per gallon.
The company also lowered its pretax margin forecast to between 17% to 19% for the period, down from their prior estimate of between 18% to 20%.
However, Cowen analysts don't think higher fuel costs are bad news for American.
The firm thinks the costs are already "baked into" the stock after its shares under-performed competitors during the first four months of the year, according to Barron's.
American Airlines provides scheduled jet service to approximately 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia.
The company is based in Fort Worth, Texas.
Separately, TheStreet Ratings team rates AMERICAN AIRLINES GROUP INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICAN AIRLINES GROUP INC (AAL) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and notable return on equity. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."