==American Airlines (AAL) cuts Q2 profit outlook, says chief commercial officer is leaving

• American Airlines slashed its sales outlook on Tuesday and now expects unit revenues to fall as much as 6% in the second quarter from a year earlier.
• The company has also let go of its chief commercial officer, Vasu Raja.

American Airlines lowers Q2 EPS, adjusted operating margin, and TRASM guidance in SEC filing 

• Co lowers guidance for Q2 (Jun), sees EPS of approximately $1.00-$1.15, excluding non-recurring items, vs. prior guidance of approximately $1.15-$1.45, and below the $1.30 FactSet Consensus.
  • Sees adjusted operating margin of approximately 8.5%-10.5% vs. prior guidance of 9.5%-11.5%.
  • Sees TRASM of approximately -5% to -6% compared to prior guidance of down 1% to 3%.
  • Reaffirms available seat miles guidance of +7% to +9%.
  • Sees CASM-ex of flat to +1% compared to prior guidance of +1% to +3%.
  • Average fuel price of $2.70-2.80 compared to prior guidance of $2.75-$2.95.

American Airlines said on Tuesday that it is slashing its second-quarter profit outlook and that its Chief Commercial Officer Vasu Raja will step down in June, prompting shares of the carrier to plummet by more than 7% in after-hours trading.

The company said it is expecting its unit revenue to be down between 5% and 6% when compared to a year ago. It had previously forecasted that revenue would decline between 1% and 3%.

American also updated its adjusted earnings per share estimate, and said it expects that metric to be between $1.00 and $1.15 during the period, down from its previous range of $1.15 and $1.45 earnings per share.

On Raja’s departure, the Fort Worth, Texas-based airliner said that he had served as the company’s CCO since April 2022. Raja joined American in 2004 and held a number of positions across sales, planning, and revenue management, the company said.