American Airlines’ unit unit revenue worse than anticipated, says Goldman Sachs

Goldman Sachs analyst Catherine O’Brien keeps a Neutral rating and $15 price target on American Airlines while also cutting the firm’s Q3 EPS view to 25c from 45c after its below-consensus guidance earlier today. The firm is updating is model to incorporate worse unit revenue trends in addition to marking-to-market for higher fuel costs. The analyst adds however that while unit costs are higher than originally anticipated given the pilot deal announced last month, American Airlines saw continued strong operational performance with capacity coming in at the higher end of the original range.