American Airlines raises profit forecast thanks to stronger demand and cheaper fuel

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An American Airlines plane takes off from Miami International Airport on May 02, 2023 in Miami, Florida.

Joe Rydle | Getty Images

American Airlines Raised its adjusted earnings outlook for the second quarter due to strong travel demand and lower fuel prices.

Adjusted earnings per share will be between $1.45 and $1.65, American estimated on Wednesday, up from a previous forecast of $1.20 to $1.40 per share. The Fort Worth, Texas-based airline said it now expects unit revenue in the three months ending June 30 to be 1% to 3% lower than the same period last year, as before a decline Improvement from forecast. 4%.

US shares were up nearly 2% in premarket trading.

American Airlines CEO Robert Isom is scheduled to speak at the Bernstein Strategic Decisions Conference at 4:30PM ET.

He’ll likely face questions about a new early labor agreement with the pilots and whether the carrier will appeal a federal judge’s decision this month that ended American’s partnership in the Northeast jetblue airways,

The airline reports second quarter results in late July.