Airline Industry Faces Turbulence: American and United Airlines Report Losses and Trim Profit Forecasts

American Airlines reported a third-quarter loss and lowered its profit forecast for the year due to higher fuel prices. The company expects to earn between $2.25 and $2.50 per share for the year, down from a previous estimate of $3 to $3.75. The adjusted operating margin is now projected to be 7%, compared to the previous forecast of 10%. Despite a resurgence in travel, fares have dropped, impacting revenue. American Airlines anticipates a unit revenue decline in the fourth quarter, while unit costs are expected to rise. The company reported a loss of $545 million for the third quarter, its first loss since Q1 2022.