Investing in airlines isn’t easy.
Friday was the busiest day in U.S. aviation history as the summer travel season began in earnest. But the sector’s stocks were falling Wednesday after
slashed the second-quarter guidance it set only a month ago.
More than 2.95 million people were screened at airports across the country Friday, according to Transportation Security Administration data. This month has included five of the busiest 10 days in history.
Despite booming travel demand, American said it now expects adjusted earnings of between $1 and $1.15 per share in the second quarter, down from its previous range of $1.15 to $1.45. Revenue per available seat mile will fall between 5% and 6%, worse than the 1% to 3% drop forecast just a month ago. The company also announced the departure of Chief Commercial Officer Vasu Raja.
American was the worst performing stock in the S&P 500 in premarket trading, tumbling 7.8% to…
