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American Air Sinks Most in Two Years on Surprise Fare Weakness

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  • Carrier says jet-fuel prices topped estimate in second quarter
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Photographer: Patrick T. Fallon/Bloomberg
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American Airlines Group Inc. tumbled the most in two years after lower-than-expected U.S. fares dented a closely watched measure of pricing power.

Revenue for each seat flown a mile probably only rose 1 percent to 3 percent in the second quarter, the world’s largest carrier said Wednesday in an investor update, cutting its earlier forecast by half a percentage point on both ends. The measurement is widely used as an indicator of a carrier’s ability to raise fares. The airline declined to comment on what drove ticket prices lower.