On Wednesday, Deutsche Bank kept its Buy rating on American Airlines (NASDAQ:AAL) but noted a significant revision in the company’s financial outlook for the June quarter. The airline now expects a year-over-year unit revenue decline of 5% to 6%, a steeper drop than the previously forecasted 1% to 3%.
This unit revenue miss is substantial, with an estimated impact of approximately $150 million in revenue for each percentage point. Consequently, Deutsche Bank has reduced its revenue projection for the June quarter from $14.9 billion to $14.4 billion, indicating a modest year-over-year growth of 2.4%, down from the earlier estimate of 6%.
