American Airlines (AAL) stock fell nearly 8% after the carrier forecast a surprise loss for its first quarter. The outlook is a departure from the major air travel carriers’ bullish performance in recent quarters.
American expects an adjusted loss of as much as $0.40 a share for the current quarter. Analysts were expecting a profit of at least $0.01, according to estimates compiled by Bloomberg.
The airline posted record fourth quarter revenue of $13.7 billion and record full-year revenue of $54.2 billion.
The company’s profit for the current quarter is expected to be impacted by a rise in non-fuel expenses as it continues to win back business after changing its corporate sales strategy.
American had implemented changes that pushed corporate customers to book directly with the airline, instead of third-party travel managers.
