A Record Profit Can't Keep American Airlines Stock Aloft: Here's Why
Last week, American Airlines (NASDAQ: AAL) reported record revenue and a record operating profit for the second quarter of 2023. The airline giant also raised its full-year earnings guidance.
Nevertheless, American Airlines stock fell 6% after the earnings report on Thursday and has fallen further in recent days. While the Q2 results were quite strong, investors are rightfully worried about whether the company can sustain its recent profit surge. Let's take a look.
Like most other major U.S. airlines, American Airlines' revenue is reaching new heights in 2023. American and its peers have restored capacity to around pre-pandemic levels, while unit revenue remains near historical highs due to strong demand and industry-wide supply constraints.
Source Fool.com
