American Airlines adjusts third-quarter outlook

American Airlines has adjusted its third quarter outlook due to the impact of hurricane Irma. American Airlines’ estimate for its third quarter total revenue per available seat mile (TRASM) was in line with prior guidance of up 0.5% to up 2.5% year-over-year. However Hurricane Irma caused closures at 40 airports in Florida and the Caribbean, including the company’s hub at Miami International Airport, and resulted in more than 5,000 flight cancellations. Based on preliminary estimates of the financial impact of the storm, the company now expects its third quarter 2017 TRASM to be approximately flat to up one percent year-over-year. Including the impact of higher fuel costs for the quarter, the company now expects its third quarter 2017 pre-tax margin excluding special items to be between 8.5% and 10.5% vs. the company’s previous guidance of between 10% and 12%. The company continues to believe that fourth quarter TRASM growth will exceed third quarter growth.