American Airlines cuts quarterly revenue forecast after Irma

Key Points
  • American had expected a third-quarter revenue increase of as much as 2.5 percent.
  • It cut guidance to flat to 1 percent on the year.
  • The airline, which operates a hub out of storm-hit Miami, blames Hurricane Irma for the drop.
American Airlines lowers outlook for key revenue metric

Hurricane Irma took a bite out of American Airlines' third-quarter revenue, the carrier said Tuesday.

The storm slammed into Florida on Sunday, forcing airports to close, including Miami International Airport, the state's largest and an American Airlines hub.

Last month, the airline had expected third-quarter revenue for each seat flown, a key industry metric, to rise from 0.5 percent to 2.5 percent year over year. The carrier revised that to flat year-over-year revenue growth to an increase of up to 1 percent.

"Hurricane Irma caused closures at 40 airports in Florida and the Caribbean, including the company's hub at Miami International Airport, and resulted in more than 5,000 flight cancellations," the airline said in a filing.

American added that fourth-quarter revenue growth would be higher than in the third quarter.

Airlines have called off more than 14,000 flights because of Irma, and have offered travel waivers and discounted fares to travelers trying to escape the storm or get home after it had passed.

By Tuesday, Miami International Airport was back up and running but not at full capacity. The airport suffered some water damage from Irma over the weekend and was gradually restoring service.

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