Please use symbol entry at top right of page to search

American Airlines bumps up revenue forecast on robust travel demand

June 3 (Reuters) - American Airlines Group Inc (AAL) has become the latest U.S. carrier to lift its forecast for quarterly revenue, another sign that pandemic-weary travelers were shrugging off rising airfares to plan more leisure trips.

The Fort-Worth, Texas-based airline said on Friday it expected revenue for the three months ending June to rise between 11% and 13% over pre-pandemic levels, compared with its prior view of a 6% to 8% increase.

The outlook upgrade aligns American Airlines (AAL) with rivals such as Delta Air Lines Inc and Southwest Airlines Co , which have enjoyed a resurgence in bookings in recent months after two years of pandemic-restricted travel.

While decades-high inflation and signs of a slowdown in the economy have raised concerns about the outlook for the airline industry, the strong revenue expectations suggest that rising price pressures have not yet deterred flyers.

The sector has, however, been grappling with a jump in fuel costs - its second-biggest expense after labor - as a supply deficit and the Russia-Ukraine war drive up crude prices.

American Airlines (AAL) said it expected fuel expenses to average between $3.92 and $3.97 per gallon in the second quarter, up from its previous forecast of $3.59 to $3.64 per gallon.

The higher revenue, however, should more than offset the increased costs, it said.

Struggling with a staff shortage, the carrier also said it expected capacity in the second quarter to be at the low end of its prior guidance range. (Reporting by Kannaki Deka in Bengaluru; Editing by Aditya Soni)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

Search News

Filter Results

Publication Date
  • All

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.