American Airlines expects fourth-quarter profit thanks to strong travel demand

American Airlines reported a $483 cardinal nett for the 3rd 4th and joined rivals successful forecasting resilient question demand, arsenic the hose manufacture continues to motion disconnected concerns astir an economical slowdown.

American's gross roseate to a grounds $13.46 cardinal successful the 3 months ended Sept. 30, up 13% from 2019 contempt flying astir 10% less, a motion passengers are inactive flying contempt higher fares. Its quarterly income came successful somewhat up of analysts' estimates.

"Demand remains strong, and it's wide that customers proceed to worth aerial question and the quality to reconnect post-pandemic," CEO Robert Isom said successful an worker enactment aft reporting results connected Thursday.

American said it expects the spot to proceed done the extremity of the vacation season. For the 4th fourth it's expecting full gross to beryllium up arsenic overmuch arsenic 13% implicit 3 years ago, earlier the pandemic. It forecast its capableness during the 4th to beryllium down 5% to 7% from 2019 and is projecting adjusted per-share net of betwixt 50 cents and 70 cents.

Shares were up 3% successful premarket trading aft it reported results.

Here's however American performed successful the 3rd quarter, compared with Wall Street expectations according to Refinitiv statement estimates:

• Adjusted net per share:  69 cents vs. an expected 56 cents.
• Total revenue: $13.46 cardinal versus expected $13.42 billion.

American had raised its forecast for third-quarter gross past week, sending shares higher.

United Airlines and Delta Air Lines besides predicted that they would beryllium profitable done the extremity of the twelvemonth acknowledgment to beardown bookings and fares.

The manufacture has seen beardown question demand, good into the off-peak autumn season, arsenic consumers proceed to alert and, successful galore cases, wage much than they were successful 2019. All 3 large airlines person touted stronger portion revenues compared with 3 years ago, earlier the Covid pandemic, a inclination that's helping them much than offset a emergence successful costs.

American's substance measure astir doubled from a twelvemonth agone to much than $3.8 billion, portion labour costs roseate 12% to $3.4 billion.

The Fort Worth, Texas-based hose said its costs per disposable spot mile volition apt emergence 8% to 10% implicit the aforesaid 4th of 2019 and for the afloat twelvemonth arsenic overmuch arsenic 13% implicit 3 years ago.

American executives volition clasp a telephone with analysts to sermon results astatine 8:30 a.m., erstwhile they volition apt look questions astir booking forecasts for 2023, concern question request and labor negotiations.