American Airlines (ticker: AAL) has exceeded earnings expectations and achieved record revenue in the second quarter. Following in the footsteps of Delta Air Lines and United Airlines, American Airlines has raised its full-year profit guidance.
In the three months ending on June 30, American Airlines reported adjusted earnings of $1.92 per share, with a total revenue of $14.1 billion. This performance has led the carrier to increase its full-year earnings guidance to a range of $3 to $3.75 per share, up from the previous range of $2.50 to $3.50.
Analysts had predicted second-quarter earnings of $1.59 per share on sales of $13.7 billion. American Airlines had initially projected earnings between $1.20 and $1.40 per share.
American Airlines attributed its strong revenue performance to sustained demand strength and its excellent completion factor performance during the quarter. Notably, June saw a surge in close-in bookings or tickets booked at short notice, contributing to the overall demand.
The remarkable earnings achieved by Delta Air Lines (DAL) and United Airlines (UAL), coupled with the ongoing international travel boom and lower fuel costs, have influenced American Airlines’ results and prompted it to upwardly adjust its full-year profit guidance.
Despite this positive news, American Airlines’ stock experienced a minor dip of 2% prior to market opening on Thursday.
