American Airlines annual profit to take $400 mln hit from MAX cancellations
July 25 (Reuters) - American Airlines Group Inc AAL.O on Thursday raised its full-year estimate for costs related to cancellations from Boeing MAX grounding to $400 million, sending its shares down 3.6%.
The No.1 U.S. airline by passenger traffic said net income rose 19% to $662 million, or $1.49 per share, in the second quarter ended June 30 from a year earlier.
American's had earlier said its full-year pre-tax profit would be hit by $350 million. The company said its pre-tax income in the quarter took an about $175 million hit due to 737 MAX cancellations.
American raised the lower end of its 2019 forecast and now expects 2019 adjusted profit to be between $4.50 per share and $6 per share, up from prior forecast range of $4.00 per share to $6.00 per share.
On an adjusted basis, the airline earned $1.82 per share. Total operating revenue rose 3% to $11.96 billion.
(Reporting by Tracy Rucinski and Sanjana Shivdas in Bengaluru; Editing by Arun Koyyur)
((tracy.rucinski@thomsonreuters.com; 1-312-408-8575; Reuters Messaging: tracy.rucinski.thomsonreuters.com@reuters.net))
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