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Third Quarter Loss

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American Airlines Struggles with Labor Costs Amidst Rival's Lucrative Profits

Originally Published 2 years ago — by ABC News

American Airlines has reported a $545 million loss for the third quarter, citing higher labor costs as the main factor. This is in stark contrast to its rivals, United Airlines and Delta Air Lines, which both earned $1.1 billion each in the same period. American's labor costs increased by nearly $600 million, offsetting the benefit of lower fuel prices. Concerns are growing over rising costs for airlines as fuel prices surge and travel slows down. American's loss adds to industry-wide anxiety over burdensome costs.

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

Originally Published 2 years ago — by CNBC

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.

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