American Airlines raises revenue forecast after strong summer travel season
An American Airlines plane parked at LaGuardia International Airport in New York.
Adam Jeffery | CNBC
american airlines said on Tuesday that its third-quarter sales were likely better than previously expected, a sign that a strong summer has helped the carrier cover a cost spike.
US stocks edged up slightly in morning trading, while other airlines tumbled.
Revenue for the three months ended Sept. 30 will rise 13% from the same period in 2019, which was $11.91 billion, the carrier said. This forecast is higher than the July growth forecast by 10-12%. The Americans predict a pre-tax margin of 4.5%, which is no more than 4% higher than the previous estimate.
While revenue is likely to be above 2019 levels, the carrier said it was flying 9.6% less than three years ago, close to the lower end of its range – another demonstration of how passengers are paying more to fly.
American is set to release quarterly results before the market opens on October 20th. Delta Air Lines begins sector reporting at the beginning of Thursday.