American Airlines forecast a sharp increase in full-year profit and beat quarterly earnings estimates on Thursday, citing strong demand for air travel.
In premarket trading, shares of the airline were up 2% at $16.55 after the company said it expected an adjusted profit of $2.50 to $3.50 per share in 2023, up from 50 cents per share the previous year.
Major airlines are attempting to capitalise on a travel boom since the pandemic’s easing grip on the world, making the industry one of the few bright spots amid runaway inflation, rising interest rates, and a looming recession.
In the face of a potential slowdown, industry executives say they see no signs of slowing demand.
‘As we look ahead to 2023, we will continue to prioritise dependability, profitability, and debt reduction,’ said Chief Executive Robert Isom.
The airline, which handled more than 475,000 flights with regional partners in the three months ending December 31, said it expects to break even on a per-share basis in the current three-month period.
Post Your Comments