_american-airlines-lowers-profit-forecast-amid-analyst-skepticism-over-strategy-moves.jpg "American Airlines Lowers Profit Forecast Amid Analyst Skepticism Over Strategy Moves from maddie price Video Screenshot Preview")
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✓ Published: 30-May-2024
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✓ Published: 30-May-2024
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American Airlines has cut its forecast for second-quarter profit, lowering expectations for earnings. The airline cited weaker pricing power, with total revenue per seat mile now expected to decline higher than anticipated. Chief Commercial Officer Vasu Raja will also leave American Airlines in June after leading the company's new business strategy. Analysts have questioned American's moves to prioritize smaller markets over corporate clients. The forecast cut comes despite projections for record levels of summer travel demand and flyer numbers from the TSA and industry group Airlines for America.
American Airlines has cut its forecast for second-quarter profit, lowering expectations for earnings. The airline cited weaker pricing power, with total revenue per seat mile now expected to decline higher than anticipated. Chief Commercial Officer Vasu Raja will also leave American Airlines in June after leading the company's new business strategy. Analysts have questioned American's moves to prioritize smaller markets over corporate clients. The forecast cut comes despite projections for record levels of summer travel demand and flyer numbers from the TSA and industry group Airlines for America.
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