In mid-morning trading, American shares [ticker: AAL] were up about 2 percent, or
American said its passenger traffic increased by 1 percent in June as the airline increased its capacity by 3.2 percent.
As a result, its load factor -- a measure of how full its planes were during the month -- dropped 1.9 percentage points to 85 percent, compared with
American also updated investors on its second-quarter earnings which it expects to report later this month.
The airline said it will have one-time accounting charges of about
For the second quarter, American expects to pay an average of
The airline's new projected margin, excluding special items, is 12 percent to 13 percent, compared with a previous range of 10 percent to 12 percent,
The carrier also told investors that its capacity is expected to be up about 3 percent partly due to larger aircraft replacing smaller planes in its fleet and better aircraft utilization. International capacity will be up 6 percent while domestic capacity will be up about 1 percent.
"Boom. The lights are back on.' These were just two of the initial investor reactions shared with us in immediate response to AAL's pre-market guide-up," J.P. Morgan analyst
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