Airline Shares Jumped in Morning Trading with American Airlines Rising over 5%
Tiger Newspress2023-01-12
Airline shares jumped in morning trading with American Airlines rising over 5%.
American Airlines Group Inc. said it expects fourth-quarter revenue to be better than it previously expected as demand for air travel remained strong through the holiday season.
The airline had already been expecting sales above pre-pandemic levels. On Thursday, the company said revenue would be 16% to 17% higher than the fourth quarter of 2019, up from its previous guidance of an increase of 11% to 13%. Revenue per available seat mile is expected to be up 24% versus 2019 levels, topping prior guidance.
The company expects adjusted earnings to be $1.12 a share to $1.17 a share, above the 50 cents a share to 70 cents a share that the company had previously expected.
Costs, excluding fuel and special items, are seen rising 10% above 2019 levels. In October, the company said it expected costs, excluding fuel, to be 8% to 10% higher than during the same period in 2019.
The company said it flew 6.1% less than in the same period in 2019, compared with the 5% to 7% lower capacity that it had expected.
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