American Airlines says it will report a bigger profit than it was previously expecting for the second quarter, which includes the kickoff of the summer travel season
FILE – American Airlines planes are parked at Pittsburgh International Airport on March 31, 2020, in Imperial, Pa. American Airlines has reached a tentative labor agreement with pilots who recently raised the possibility of a strike against the nation’s biggest airline if they were unable to get a new contract with higher pay. American said Friday, May 19, 2023, that the four-year deal, if ratified by pilots, would give them pay and profit-sharing “that match the top of the industry.” (AP Photo/Gene J. Puskar, file)
The Associated Press
FORT WORTH, Texas — American Airlines raised its second-quarter profit forecast Wednesday, citing higher revenue and lower fuel costs during the start of the summer travel season than it had predicted in April.
The nation’s biggest airline said it expects to earn between $1.45 and $1.65 per share, or 25 cents better than its earlier forecast. The numbers exclude certain costs.
Shares of American Airlines Group Inc. rose slightly in morning trading while other airline stocks fell less than 1%.
American said revenue for every mile that passengers fly will be higher than it predicted in April. Meanwhile, the cost of jet fuel has been about 10 cents a gallon less than the airline expected.
American did not, however, change its financial outlook for the full year.
Savanthi Syth, an airline analyst for Raymond James, said airline revenue will be strong over summer due to vacation travel, but the fall — when business flying is a higher share of revenue — “remains in question.” Corporate travel has recovered from the pandemic more slowly than leisure travel.
The Texas airline did not comment on a recent court decision ordering the airline to break up its partnership with JetBlue Airways in the northeast United States. CEO Robert Isom was likely to face questions about the court ruling, and whether American will appeal, when he appeared at an investor conference later Wednesday.
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