Shares of American Airlines tumbled more than 5 percent Wednesday after the world’s largest carrier trimmed its outlook for second-quarter revenue growth.
Revenue for each seat it flies a mile, a key revenue metric, likely grew 1 percent to 3 percent in the three months ended in June, down from a previous forecast of 1.5 percent to 3.5 percent growth, due to weakness in the domestic market, American said in a filing.
Other airline stocks fell along with American as investors have fretted about how carriers will cope with a surge in gasoline costs.
United‘s stock was down more than 3 percent and Delta, which reports second-quarter earnings on Thursday, fell more than 3 percent. Southwest was off about 2 percent, while Alaska fell nearly 5 percent.
American also said it expected that a technical problem at its regional partner PSA Airlines last month, which resulted in the cancellation of about 3,000 flights, would cost it $35 million.
American’s shares are down close 29 percent this year.