American Airlines Group Inc on Wednesday forecast first-quarter profit below market expectations, joining rival United Airlines in signaling a hit from persistently high labor and fuel costs.
The dull outlook pushed its shares to close 9.2% lower on Wednesday and weighed on those of other major U.S. airlines, which are set to report results this month, starting with Delta Air LinesHigher fares amid rising global travel have so far helped the airline industry offset a hit from fuel and labor costs, but rising borrowing costs, inflation and job losses have sparked worries about demand.
"We had expected American to come in towards the better end in a similar manner as JetBlue's guidance update provided in mid-March," Syth added.The airline industry has been able to survive the broader economic slowdown in the United States, thanks also to tight airline capacity due to shortages of aircraft and spare parts.
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