American Airlines (NASDAQ: AAL) stock dropped 7.2% despite beating earnings expectations for Q2, with $0.95 earnings on $14.4 billion sales. However, GAAP earnings were lower at $0.91, down 10% from last year, impacting profit margins.

While fuel costs decreased, salaries, wages, and benefits rose 11%, and landing fees increased by 7% in Q2, affecting profitability. Concerns about economic weaknesses impacted company guidance, leading to a potential loss of $0.60 per share in Q3 and volatile full-year results for American Airlines.

Investors should note American Airlines’ uncertain financial outlook, with possible losses in the current quarter and a wide range of full-year outcomes. With $28 billion in debt and market cap of $7.8 billion, caution is advised.

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Read more at Yahoo Finance: Why American Airlines Stock Tumbled Today