American Airlines raises second-quarter profit outlook on lower fuel costs
8:18 am Wednesday, May 31st, 2023
(Reuters) – American Airlines Group Inc on Wednesday raised its forecast for second-quarter profit on lower jet fuel costs and high travel demand.
The company’s shares were up 2% at $14.91 in premarket trade.
Travel demand has stayed strong even amid worries of a looming recession, with travel during the Memorial Day weekend topping 2019 pre-COVID levels for the first time.
American Airlines Group forecast second-quarter adjusted profit in the range of about $1.45 to $1.65 per share, compared with its previous outlook of about $1.20 to $1.40 per share.
The company expects average fuel price per gallon, including taxes, to be about $2.55 to $2.65 in the second quarter, down from its previous estimate of about $2.65 to $2.75.
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Savio D’Souza and Shounak Dasgupta)
