American Airlines Expects Lower Passenger Revenue, Shares Descend

Shares of American Airlines Group (AAL) are slipping in Friday trading after the airline reported mixed quarterly results.
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Shares of American Airlines Group (AAL) are slipping in Friday trading after the airline reported mixed quarterly results. American reported adjusted earnings of $2.62 a diluted share, a 32% year-over-year increase, beating analyst estimates by $0.02, according to Thomson Reuters. Revenue, however, fell by 4.7% to $10.8 billion, narrowly missing expectations. The company said its revenue was negatively impacted by its cargo operations, which fell 12.3%, and its mainline passenger business, where passenger revenue per seat mile fell 6.9% from a year ago. Cost per available seat mile fell 12.8%. American's president Scott Kirby said on a conference call that passenger unit revenue will likely keep falling in the near term as capacity exceeds demand in some areas, the strong U.S. dollar weighs on overseas travelers' spending power and as some economies remain weak.