American Airlines shares hit 2-year low on investor update
FORT WORTH, Texas (AP) — Shares of American Airlines are sinking to their lowest level in more than two years as the carrier warns about rising fuel prices and lost revenue from Hurricane Florence.
The shares fell $1.90, or 5.3 percent, to $34 in Tuesday afternoon trading.
American says it canceled 2,100 flights during Florence, costing it $55 million in revenue and $50 million in pretax income.
Aside from the storm, American says revenue for every seat flown one mile rose between 2 percent and 3 percent in the third quarter, a sign that fares and fees are rising.
But American also says it paid $2.28 to $2.33 a gallon for fuel in the quarter, six cents more than it expected in July. Fuel prices have jumped more than one-third in the past year.