Airplanes are seen at Charlotte Douglas International Airport in Charlotte, USA on December 28, 2022.
Peter Zay | Anadolu Agency | Getty Images
American Airlines Shares rose nearly 5% in premarket trading on Thursday after the airline raised its fourth-quarter revenue and earnings estimates on the back of strong demand and high fares.
US estimates put revenue up as much as 17% from 2019, versus a previous forecast of an 11% to 13% increase in the pre-Covid period three years ago.
According to American, revenue per seat mile is likely to have grown 24% in the quarter starting in 2019, ahead of the previous guidance of 18% to 20%.
It is expected to report adjusted earnings per share of between $1.12 and $1.17, up from its previous estimate of 50 to 70 cents.
Thursday’s update is the first hint of how a major airline was coping with a bumpy end to the year as severe weather sparked mass cancellations across the US during the busy holiday travel season. American is expected to release the full results on 1/26/2020.
Delta Airlines is expected to announce quarterly results on Friday morning. Its shares are up more than 2% in premarket trading.