American Airlines hits rough air after strategic missteps

American Airlines is cutting its financial outlook, with CEO Robert Isom acknowledging the carrier misjudged travel demand before the peak summer season. 

The carrier's total revenue per available seat mile is expected to be off about 5% to 6%, versus its previous forecast calling for a decline of about 1% to 3%.

"The guidance cut seems to e a combination of both higher domestic competition (competitor fare sales and higher capacity) as well as a loss of corporate share given a de-emphasis post-pandemic," BofA Global analysts Andrew Didora and Samuel Clough said in a research note.