Wednesday, May 29, 2024 American Airlines revises its Q2 earnings forecast downward and announces the departure of CCO Vasu Raja, leading to a significant stock drop. American Airlines announced a revised forecast late Tuesday, lowering its second-quarter earnings projection to $1-$1.15 per share from the initially expected $1.
15-$1.45. The airline also anticipates a 5%-6% decrease in unit revenues compared to the same period last year, a revision from the previously forecasted 1%-3% decline.
In addition to these financial adjustments, the airline disclosed that Vasu Raja, the Chief Commercial Officer, will depart in June. In the interim, Stephen Johnson, the Vice Chairman and Chief Strategy Officer, will oversee Raja’s duties and lead the search for a new CCO. Following the announcement, American Airlines’ stock plummeted by 6.
25% in after-hours trading to $12.60, marking a potential new low for 2024. The stock had already dropped 2.
9% to $13.44 during regular trading hours on Tuesday, breaching the 200-day moving average. Other major airlines also experienced declines.
United Airlines saw a 1.8% drop in late trading, continuing a downward trajectory to the 50-day moving average, with shares decreasing to $50.64 on Tuesday, marking the sixth consecutive loss.
Delta Air Lines’ shares also retreated by 1.7% overnight, with the stock dipping 3% to $50.28 on Tuesday, nearing a critical test of the 50-day moving average and a potential buying point.
Southwest Airlines share.
