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American Airlines Group Inc. shares fell after it said fourth-quarter unit revenue will be less than an already lowered forecast as traffic declined in some international markets.
The carrier also narrowed its expectation for pretax margin, excluding special items, to 10 percent to 11 percent, from an earlier projection of as much as 12 percent, the Fort Worth, Texas-based company said today in a statement.
American’s traffic, or miles flown by paying passengers, slipped 7.4 percent across the Atlantic and 6.2 percent on routes to Latin America in December.
The shares fell 3.6 percent to $50.17 at 8:51 a.m. in New York.
Revenue from each seat flown a mile, an indicator of traffic and fares, will be unchanged to down 2 percent, American said. The carrier last month lowered its unit revenue outlook to a range of down 1 percent to up 1 percent. In October, American expected the measure to be flat to up 2 percent.
This article was written by Mary Schlangenstein from Bloomberg and was legally licensed through the NewsCred publisher network.