American Airlines Net Income Drops to $71 Million in Q2

American Airlines Group reported a significant decline in second-quarter earnings on Thursday, with net income falling to $71 million from $599 million in the same period last year. The slump occurred despite a 16.3% increase in total operating revenue, which reached $16.735 billion on the back of strong passenger growth.

Rising operating expenses eroded the company's profits, specifically a surge in aircraft fuel and related tax costs, which jumped 83.3% to $4.881 billion. Because of these headwinds, the airline lowered its full-year earnings outlook, now projecting adjusted results ranging from a loss of $0.65 per share to earnings of $0.65 per share.

Following the announcement, the company's stock fell more than 3% in pre-market trading.