American Airlines raises earnings forecasts due to strong demand and cheaper fuel

  • American Airlines raised its revised earnings forecast for the second quarter.
  • The company cited strong travel demand and lower fuel prices.
  • The American CEO is scheduled to speak at the Bernstein Investors Conference later on Wednesday.

An American Airlines plane takes off from Miami International Airport on May 2, 2023 in Miami, Florida.

Joe Riddle | Getty Images

American Airlines raised its revised earnings forecast for the second quarter thanks to strong travel demand and lower fuel prices.

Adjusted earnings per share will range between $1.45 and $1.65 estimated Wednesday, up from previous forecasts of $1.20 to $1.40 per share. The Fort Worth, Texas-based airline said it now expects unit revenue in the three months ended June 30 to come in 1% to 3% lower than in the year-ago period, an improvement over a previous forecast of a decrease of as much as 4%.

US stocks rose more than 2% in pre-market trading.

American Airlines CEO Robert Isom is scheduled to speak at the Strategic Decisions Conference in Bernstein at 4:30 p.m. ET on Wednesday.

He will likely face questions about a new initial working agreement with the pilots and whether the carrier will appeal a federal judge’s ruling this month that struck down America’s Northeast partnership with JetBlue Airways.

The airline is scheduled to report second-quarter results at the end of July.

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