The carrier expects pre-tax special items to amount to about $215 million, which includes merger integration costs and fleet restructuring expenses. Capex guidance was increased from the earlier estimate of $410 million to $535 million now as the there was a shift in the timing of new aircraft deliveries.
Related: American Airlines hits 52-week low
The Fort Worth, Texas-based airlines also updated that its subsidiary PSA Airlines’ operations were impacted by an IT issue, which made the airlines to cancel around 3,000 flights for a week in June. The company projects that this issue would affect its pre-tax income negatively by about $35 million.
Related: American Airlines reports Q1 2018 results
The airline industry has been affected badly by the surge in the fuel costs. The trimmed outlook of American Airlines added woes to the already struggling peers of the company. Alaska Air Group (ALK), United Continental (UAL), Delta Air Lines (DAL), Southwest Airlines (LUV), and JetBlue Airways were down about 4.3%, 3.4%, 1.5%, 0.9%, and 1%, respectively.
At the end of today’s trading session, shares of American Airlines plunged 8% to $35.96. AAL stock has tumbled about 30% both in the year-to-date period and past one year. The company is expected to announce the results for 2Q later this month.