American forecasts lower unit revenue, says took ‘aggressive’ action after sales strategy backfires

American Airlines is forecasting a drop in unit revenue of as much as 4.5% for the third quarter as high demand failed to make up for an industry-wide glut of flights that have forced airlines to slash fares.

The carrier’s profit fell 46% during the second quarter even though revenues rose. The carrier has been grappling with an industry-wide oversupply of flights and a direct-to-consumer sales strategy it adopted that backfired.

Here is how American performed in the second quarter compared with Wall Street estimates compiled by LSEG:

• Earnings per share: $1.09 adjusted vs. $1.05 expected
• Revenue: $14.33 billion vs. $14.36 billion expected

Shares of American fell about 8% in premarket trading Thursday.

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