[ad_1]
American Airlines Boeing 787-9 Dreamliner takes off from Los Angeles international Airport on November 11, 2020 in Los Angeles, California.
AaronP | Bauer-Griffin | GC Images | Getty Images
American Airlines on Thursday forecast a second-quarter profit as strong travel demand helps it cover its soaring fuel costs.
American, the country’s largest airline, said March was the first month since the pandemic began more than two years ago that its revenue surpassed 2019 levels and said bookings have continued to rise.
American is the third major airline to report results. United Airlines said Wednesday it expects to return to a profit this year thanks to a surge in bookings and fares, echoing similar comments a week earlier from Delta Air Lines. United’s forecast sent airline stocks higher in after-hours trading Wednesday.
American shares surged after reporting results and were up more than 9% in premarket trading, up from a roughly 5% increase fueled by United’s results. United was up more than 8%.
Here’s how American performed in the first quarter compared with what Wall Street expected, based on average estimates compiled by Refinitiv:
- Adjusted earnings per share: a loss of $2.32 versus an expected loss of $2.40
- Total revenue: $8.9 billion versus expected $8.826 billion.
American posted a net loss of $1.6 billion in the first quarter on revenue of nearly $8.9 billion, more than double its $4 billion in sales a year ago and ahead of analyst estimates.
The Fort Worth, Texas-based airline said it paid $2.80 a gallon for fuel in the first quarter, up 65% from last year. American stopped hedging fuel after oil prices cratered in 2014.
American executives will hold a call with analysts and media to discuss results at 8:30 a.m.
This is breaking news. Check back for updates.
Source link