American Airlines posted lower second-quarter profits and cut its earnings outlook for 2018 after fuel costs surged during what CEO Doug Parker called the carrier's "most challenging quarter" since it merged with US Airways five years ago.
American, the world's largest airline by traffic, and its competitors have been grappling with a more than 50 percent rise in fuel during the past year, which has crimped their bottom lines. American expects to earn an adjusted per-share profit of between $4.50 and $5 a share in 2018, down from an earlier full-year estimate of $5 to $6 it forecast in April.
The airline said it plans to defer some aircraft deliveries and slow its growth in the second half of the year to reduce costs. American's stock is down 24 percent in 2018, more than its closest competitors, but it was up 3.8 percent Thursday as investors welcomed the cost--cutting plan.