American Airlines forecast fourth-quarter profit higher than analysts had expected as demand for travel continued to grow despite higher air fares and risks of an economic downturn.
The estimate of the North American airline came after publishing this Thursday (20) a profit above estimates in the third quarter.
American Airlines expects adjusted earnings of between 50 cents and 70 cents per share for the fourth quarter of 2022, compared with analysts’ estimate of 22 cents, according to IBES data from Refinitiv.
The company projects total revenue growth for the fourth quarter of between 11% and 13% over the same period in 2019, while seeing a 5% to 7% drop in capacity.
“Demand remains strong and customers continue to value air travel and the ability to reconnect after the pandemic,” American Airlines Chief Executive Robert Isom said in a statement.
American is the latest airline to provide an upbeat forecast, even as the worsening economic outlook has raised concerns about public travel spending.
The company said demand for domestic and international short-haul travel is “very strong,” and the lifting of travel restrictions and testing requirements around the world is expected to further increase international long-distance traffic.
The company said debt reduction remains a “top priority”, adding that it is on track to reduce total debt levels by $15 billion by the end of 2025.
The company’s third-quarter adjusted earnings were 69 cents a share, beating analysts’ expectations of 56 cents a share. Quarterly revenue increased 13% from 2019 to $13.5 billion.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
