Airlines Declines as American Comments on Q1 (AAL) (LUV) (UAL) (DAL)

Airlines stocks were pressured Tuesday after American Airlines (NYSE: AAL) and Southwest Airlines Co. (NYSE: LUV) reported March results. American also commented on Q1 performance.

American Airlines said Q1 operations were significantly impacted by severe weather at its hubs in Charlotte, Chicago, Dallas/Fort Worth, New York, Philadelphia, and Washington, D.C. In total, the company canceled more than 34,000 flights in the first quarter. The company estimates these weather-related cancellations reduced first quarter revenue by approximately $115 million and reduced first quarter operating profit by approximately $60 million. The company now expects its first quarter operating margin to be approximately 5 percent to 7 percent.The company expects first quarter 2014 PRASM to be up approximately 2.5 percent to 3.5 percent versus the same period last year

Peers United Continental Holdings, Inc. (NYSE: UAL) and Delta Air Lines Inc. (NYSE: DAL) declined in sympathy with American.

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