American Airlines is looking at better-than-expected revenue for this year's third quarter following a strong summer season and an upward trend in travel in general. The airline will report its quarterly results on October 20th but has already hinted at better numbers before the official announcement.
On October 11th, American Airlines issued a forecast for its third quarter results and expected to post revenue above its previous guidance. This comes even as the carrier made schedule cuts, indicating that higher-than-usual fares helped offset an increase in expenditure in the last few months.
For the quarter ending in September, American expects a revenue jump of 13% compared to the same period in the pre-pandemic year of 2019. This is higher than the company's previous guidance of an increase of 10% to 12%.
American Airlines is expecting better numbers for Q3 than previous estimates.
Total revenue per available seat mile for the quarter is projected to increase by 25% – another area that has performed better than the prior guidance of an increase of between 20% and 24%. Pre-tax margins are also expected to be better at around 4.5% – more than the previously predicted range of 2 to 4%.
But the total available seat miles continue to fall behind the pre-COVID era numbers, with the carrier expecting a dip of 9.6% compared to the same period in 2019.