FORT WORTH, Texas (AP) — American Airlines said its first-quarter earnings fell 67 percent as higher costs, including labor and fuel, offset a positive trend in airfares.

American said net income was $234 million, or 46 cents per share, down from $700 million, or $1.14 per share a year earlier.

The Fort Worth, Texas-based company said adjusted for one-time gains and costs, earnings came to 61 cents per share. That exceeded Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of 57 cents per share.

The world’s largest airline posted revenue of $9.62 billion in the period, up 2 percent and in line with Street forecasts. Revenue for each seat flown one mile by American, a proxy for average fares, rose 2 percent in the quarter.

The increase in costs was an even sharper 11 percent, as American spent more on fuel, labor and maintenance. American is also offering raises to pilots and flight attendants “outside of contract negotiations,” a move that should sit well with its unions but might be viewed negatively by investors.

Shares fell nearly 5 percent in premarket trading.

American Airlines Group Inc. shares have decreased almost 1 percent since the beginning of the year. The stock has increased 26 percent in the last 12 months.

_____

Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on AAL at https://www.zacks.com/ap/AAL

_____

Keywords: American Airlines, Earnings Report, Priority Earnings