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American Airways expects fourth-quarter revenue due to robust journey demand

An American Airways Boeing 787-9 Dreamliner approaches for a touchdown on the Miami Worldwide Airport on December 10, 2021 in Miami, Florida.

Joe Raedle | Getty Photographs

American Airlines reported a $483 million revenue for the third quarter and joined rivals in forecasting resilient journey demand, because the airline trade continues to shrug off considerations about an financial slowdown.

American’s income rose to a file $13.46 billion within the three months ended Sept. 30, up 13% from 2019 regardless of flying almost 10% much less, an indication passengers are nonetheless touring regardless of greater fares. Its quarterly gross sales got here in barely forward of analysts’ estimates.

“Demand stays robust, and it is clear that prospects proceed to worth air journey and the power to reconnect post-pandemic,” CEO Robert Isom mentioned in an worker notice Thursday after the corporate reported outcomes.

Isom mentioned on an earnings name that the airline will seemingly get again to 95% to 100% of its 2019 capability subsequent 12 months, an enlargement he mentioned is restricted by slower plane deliveries and a pilot shortage on regional airways.

American mentioned it expects the power to proceed via the top of the vacation season. For the fourth quarter it is anticipating whole income to be up as a lot as 13% over three years in the past, earlier than the Covid pandemic. It forecast its capability in the course of the quarter to be down 5% to 7% from 2019 and is projecting adjusted per-share earnings of between 50 cents and 70 cents.

The corporate’s shares have been down about 2% in morning buying and selling.

Here is how American carried out within the third quarter, in contrast with Wall Road expectations in line with Refinitiv consensus estimates:

  • Adjusted earnings per share: 69 cents vs. an anticipated 56 cents.
  • Complete income: $13.46 billion vs. an anticipated $13.42 billion.

American had raised its forecast for third-quarter income final week, sending shares greater.

Rivals United Airlines and Delta Air Lines additionally predicted that they’d be profitable via the top of the 12 months due to robust bookings and fares.

The trade has seen robust journey demand, properly into the off-peak fall season, as shoppers proceed to fly and, in lots of circumstances, pay greater than they have been in 2019. All three main airways have touted stronger unit revenues in contrast with three years in the past, earlier than the pandemic, a development that is serving to them greater than offset an increase in prices.

American’s gas invoice almost doubled from a 12 months in the past to greater than $3.8 billion, whereas labor prices rose 12% to $3.4 billion.

The Fort Price, Texas-based airline mentioned its prices per accessible seat mile will seemingly rise 8% to 10% within the final three months of the 12 months over the identical quarter in 2019 and, for the complete 12 months, as a lot as 13% over three years in the past.

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