American Airlines raises revenue forecast after strong fourth quarter

Planes are seen at Charlotte Douglas International Airport on December 28, 2022 in Charlotte, United States.

Peter J | Anadolu Agency | Getty Images

American Airlines Shares rose nearly 5% in premarket trading on Thursday after the carrier raised its revenue and profit estimates for the fourth quarter, fueled by strong demand and higher fares.

US estimates revenue rose 17% over 2019, up from 11% to 13% growth in the three-year-ago period from the previous forecast. covid pandemic,

American said revenue per seat mile climbed 24% in the 2019 quarter, up from its prior forecast of 18% to 20%.

It expects to report adjusted earnings per share of between $1.12 and $1.17, up from its previous estimate of 50 cents and 70 cents.

Thursday’s update is the first sign of how a major airline faced a rocky end to the year after severe weather caused mass cancellations around the US during the busy holiday travel season. American is scheduled to report full results on January 26.

Delta Airlines It is set to announce quarterly results on Friday morning. Its shares were up more than 2% in premarket trading.

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