From CNBC: 2024-05-29 14:44:19

American Airlines will cut capacity growth in the second half of the year following a failed sales strategy, leading to a 15% stock tumble. The airline is reevaluating initiatives to drive bookings directly, including reversing a decision to limit some travel agency bookings for frequent flyer miles. The chief commercial officer is set to leave next month.

American’s stock drops as it revises revenue forecasts, expecting a 6% decline in unit revenues for the second quarter. Soft bookings and supply-demand imbalance prompt ticket discounts. United maintains earnings estimates, emphasizing American’s flawed initial forecast rather than a shift in passenger demand. The airline prioritizes Sun Belt cities and large hubs over coastal markets.



Read more at CNBC: American Airlines cuts growth after sales strategy backfires