2023-04-12 13:37:40 ET
Shares of American Airlines ( NASDAQ: AAL ) slumped as much as 9.8% on Wednesday and dragged down other airline stocks after the company issued preliminary earnings guidance that failed to cheer investors.
AAL stock was the top percentage loser on the benchmark S&P 500 ( SP500 ) index. Meanwhile, the S&P 500 Airlines Index fell 3.1% .
AAL in a regulatory filing forecasted Q1 adj. EPS of $0.01 to $0.05, the midpoint of which was lower than the consensus EPS estimate of $0.04. Its Q1 guidance for total revenue per available seat mile, cost per available seat mile and operating margin conformed with midpoints laid out in prior guidance in January.
Other U.S. airline stocks also declined across the board, with United Airlines ( UAL ) down 5.2% and among the top S&P percentage losers. Alaska Air Group ( ALK ) slipped 1.9% , Southwest Airlines ( LUV ) was lower by 1.5% , and Delta Air Lines ( DAL ) retreated 1.4% .
Shares of cruise operators were also lower on Wednesday, with Norwegian Cruise Line ( NCLH ) down 3.1% and Carnival ( CCL ) down 1.9% .
Focus will now be on Delta Air Lines' ( DAL ) Q1 report scheduled for Thursday morning before the opening bell.
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Airline stocks catch downdraft on American Airlines' disappointing Q1 profit guidance