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American Airlines shares tumble as outlook falls short

1. American Airlines reported higher fourth-quarter profits, surpassing analysts' expectations. 2. First-quarter outlook predicts a loss per share of 20 to 40 cents. 3. Capacity is expected to be flat or down 2% compared to last year.

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FAQ

Why Bearish?

The disappointing first-quarter outlook may hinder investor confidence, reflecting past struggles during downturns.

How important is it?

Earnings reports strongly influence stock prices, especially disappointing outlooks in competitive industries.

Why Short Term?

Immediate investor reaction to quarterly results and forward guidance typically affects short-term stock prices.

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