American Airlines raised its earnings outlook for 2023 after a strong start to the peak travel season, the latest airline to reap the rewards from the continued boom in demand.
The Fort Worth-Texas based carrier reported net income in the second quarter of $1.34 billion, or $1.88 a share, up from $476 million, or 68 cents a share in the same period a year earlier. Record revenue of $14.06 billion topped analysts’ expectations and was up 4.7% from a year earlier.
American expects to earn between $3 and $3.75 a share for the full year, adjusting for one-time items, up from a forecast in May to earn about $2.50 to $3.50.
The company’s forecasts include costs from labor deals, like a tentative agreement with its pilots. However, American’s pilots union are seeking improvements to its tentative contract following a deal struck but rival United and its pilots’ union last week.
Shares were down about 2% in premarket trading.
Here’s how American Airlines performed in the second quarter compared with what Wall Street anticipated, based on an average of analysts’ estimates compiled by Refinitiv:
- Adjusted earnings per share: $1.92 vs. $1.59 expected
- Total revenue: $14.06 billion vs. expected $13.74 billion
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