American Airlines gives more cheerful forecasts for summer profits

FORT WORTH, Texas (AP) – American Airlines on Friday raised its revenue forecast for the second quarter, joining a growing list of airlines that expect demand this summer to exceed previous forecasts when the travel industry recovers after the pandemic.

The American predicted that revenue will grow by 11% to 13% compared to the second quarter of 2019. This easily exceeded the airline’s previous forecast of an increase of 6-8% compared to 2019.

However, shares of US Fort Worth, Texas, fell more than 8% in trading at noon amid falling broad market indices.

Delta, Southwest, JetBlue and others have recently raised revenue forecasts as the number of people flying in the United States approaches the level of a pandemic. At the same time, airlines offer fewer flights than in 2019, which helps them significantly raise average fares.

Americans said that revenue per seat will grow to 22% compared to 2019, easily exceeding the previous forecast of an increase of 14-16%.

“This income offsets some real costs,” CEO Robert Isam told an investor conference.

According to the banking firm Cowen, air ticket prices have risen by almost 50% compared to this time last year.

The airline said costs excluding jet fuel would rise to 11% per seat, which is slower than Delta. Americans expect to pay nearly $ 4 a gallon for fuel, which is almost twice as much as they paid three years ago.

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