American Airlines is cutting its full-year earnings forecast again after escalating fuel costs weighed on its second-quarter.
The world's biggest airline said Thursday that it now foresees full-year earnings in a range of $4.50 to $5 per share. In April, American cut its forecast for earnings to a range of $5 to $6 per share.
Chairman Doug Parker called it the most challenging since a merger with US Airways five years ago, partly because spiralling fuel costs which led to a more than a $700 million increase in expenses. It expects to spend about $2 billion more on fuel than it did last year.
American earned $566m, or $1.22 per share, down from $864m, or $1.75 per share, last year. Adjusted per-share earnings were $1.63, 4 cents better than that which analysts surveyed by Zacks Investment Research were looking for.
Besides higher fuel, American's revenue is not growing as fast as its major competitors. And it suffered a major blow in June when computer problems at regional subsidiary, PSA Airlines, caused the cancellation of more than 2,500 flights.
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The increase in jet fuel costs is making some marginal flights less profitable. American said it will further trim previous plans to increase flying in the third and fourth quarters. That could help allay investors' fears that American and other airlines are expanding faster than the growth in travel demand, which is preventing them from raising fares to offset fuel prices.
The airline also announced that it will delay the delivery of 22 Airbus jets to reduce capital spending in 2019 through 2021 by $1.2 billion.
In trading before Thursday's opening bell, the shares were up 74 cents, or 2 per cent, to $38.19.
Revenue rose 3.7 per cent to $11.64bn, less than the $11.68bn that analysts were expecting.
Fuel spending at American rose more than 39 per cent from a year ago — an increase of $729m including fuel used by its regional affiliates.
COMPANY%20PROFILE
The more serious side of specialty coffee
While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.
The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.
Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”
One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.
Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms.
In Full Flight: A Story of Africa and Atonement
John Heminway, Knopff
The specs
Key products and UAE prices
iPhone XS
With a 5.8-inch screen, it will be an advance version of the iPhone X. It will be dual sim and comes with better battery life, a faster processor and better camera. A new gold colour will be available.
Price: Dh4,229
iPhone XS Max
It is expected to be a grander version of the iPhone X with a 6.5-inch screen; an inch bigger than the screen of the iPhone 8 Plus.
Price: Dh4,649
iPhone XR
A low-cost version of the iPhone X with a 6.1-inch screen, it is expected to attract mass attention. According to industry experts, it is likely to have aluminium edges instead of stainless steel.
Price: Dh3,179
Apple Watch Series 4
More comprehensive health device with edge-to-edge displays that are more than 30 per cent bigger than displays on current models.
COMPANY%20PROFILE%20
UAE%20medallists%20at%20Asian%20Games%202023
A%20Little%20to%20the%20Left
RESULT
Al Hilal 4 Persepolis 0
Khribin (31', 54', 89'), Al Shahrani 40'
Red card: Otayf (Al Hilal, 49')
'The Batman'
Stars:Robert Pattinson
Director:Matt Reeves
Rating: 5/5
Manchester United v Liverpool
Premier League, kick off 7.30pm (UAE)
Disclaimer
Director: Alfonso Cuaron
Stars: Cate Blanchett, Kevin Kline, Lesley Manville
Rating: 4/5
Padmaavat
Director: Sanjay Leela Bhansali
Starring: Ranveer Singh, Deepika Padukone, Shahid Kapoor, Jim Sarbh
3.5/5
Company%20Profile
COMPANY PROFILE
Kanguva
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
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The 12
England
Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur
Italy
AC Milan, Inter Milan, Juventus
Spain
Atletico Madrid, Barcelona, Real Madrid
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
The Beach Bum
Director: Harmony Korine
Stars: Matthew McConaughey, Isla Fisher, Snoop Dogg
Two stars
While you're here
MATCH INFO
Chelsea 1 (Hudson-Odoi 90 1')
Manchester City 3 (Gundogan 18', Foden 21', De Bruyne 34')
Man of the match: Ilkay Gundogan (Man City)
While you're here
Joyce Karam: Chaotic first debate unlikely to swing undecideds
Hussein Ibish: Donald Trump's 3-step plan to cling to power
Sulaiman Hakemy: Make America lose again
More from David Lepeska
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Citadel: Honey Bunny first episode
Directors: Raj & DK
Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon
Rating: 4/5
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Habtoor interview
COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
Wicked
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Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5