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Jan 27 (Reuters) - American Airlines forecast its 2026 nett supra Wall Street expectations connected Tuesday adjacent arsenic it flagged a deed of up to $200 cardinal from a wintertime tempest that has forced thousands of formation cancellations successful caller days.
The carrier's outlook reflects a preliminary estimation of the interaction from Winter Storm Fern, which has swept done much of the U.S., starring the hose to task a deed of astir $150 cardinal to $200 cardinal successful the existent quarter.
"The tempest has resulted successful much than 9,000 formation cancellations to date, making it the largest weather-related operational disruption successful American's history," the bearer said successful a statement.
The sprawling tempest gripped over 2 twelve U.S. states implicit the weekend, and is expected to effect successful insured losses ranging from conscionable nether $1 cardinal to the single-digit billions, according to experts.
American Airlines CEO Robert Isom told CNBC the hose volition get "back connected track" implicit the adjacent 2 to 3 days.
AMERICAN EXPECTS STRONG 2026
American expects its full-year adjusted nett successful the scope of $1.70 to $2.70 per share, compared with analysts' mean estimation of $1.97 per share, per information compiled by LSEG.
Its outlook signals expectations for a continued betterment successful firm question and beardown request for its high-margin premium services.
Shares of the institution roseate astir 4% successful premarket trading.
With lower-income travelers feeling the strain of tighter budgets amid a challenging macroeconomic backdrop, airlines are progressively turning to affluent customers acceptable to wage apical dollar for high-margin premium offerings.
American Airlines has been stepping up its premium upgrades to drawback up with rivals Delta Air Lines and United Airlines and seizure a bigger stock of surging request for higher-end travel.
The airline's full operating gross successful the 4th fourth rose 2.5% to astir $14 billion, falling marginally abbreviated of the $14.03 cardinal analysts had expected.
That fig includes a antagonistic interaction of astir $325 million, American said, owed to delays and cancellations from a historic U.S. authorities shutdown implicit the fall.
Its fourth-quarter adjusted nett came successful astatine 16 cents per share, also missing estimates of 34 cents per share.
(Reporting by Shivansh Tiwary and Utkarsh Shetti successful Bengaluru; Editing by Maju Samuel)
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