American Airlines Surprises with Strong Earnings, Stock Soars

American Airlines lowers its full-year guidance due to rising fuel costs and demand trends, but reports adjusted third quarter earnings that beat Wall Street expectations. The stock rebounds by over 4% after hitting a three-year low. The airline's adjusted earnings per share for Q3 came in at $0.38, surpassing analysts' expectations of $0.25. American Airlines now expects full-year adjusted earnings per share of $2.25-$2.50, down from the previous forecast of $3-$3.75. The downbeat forecast follows a similar warning from rival United Airlines. Despite challenges, American Airlines remains optimistic about steady demand and strong segments such as international travel.