American Airlines raises quarterly revenue forecast

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American Airlines has become the latest carrier in the United States to announce it will raise its financial forecast for quarterly revenue, a positive sign for the rebound in travel.

In a conference call on Friday, U.S. executives revealed they expect revenue for the three months ending June to rise 11-13% from pre-pandemic levels, compared to their previous vision of an increase of 6 to 8%.

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While increased demand has led to increased revenue, rising fuel costs have forced carriers to raise airfares. American said it expects fuel expenses to average between $3.92 and $3.97 per gallon in the second quarter, up from its previous forecast of $3.59 to $3.64 per gallon.

The positive revenue expectations come as concerns have been raised about the short-term outlook for the airline industry amid decades-high inflation and signs of an economic slowdown. economy continue to have an impact on confidence.

Earlier this week, Delta Air Lines raised its revenue outlook for this second quarter and said the adjustment would put it at pre-pandemic 2019 levels, in part due to pent-up demand and despite a surge in airline prices. plane tickets, accommodation and car. rentals.

Southwest Airlines has also reported an upsurge in bookings in recent months.

In May, a new study by the International Air Transport Association (IATA) found that passenger numbers increased in March, indicating that global air travel continues to recover from the impact of the pandemic. of coronavirus and related travel restrictions.

The data showed that total traffic measured in revenue passenger kilometers (RPK) was up 76% from March 2021, but was still down about 41% from pre-pandemic 2019 levels.

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