FORT WORTH, TX
American Airlines on Friday raised its second-quarter revenue forecast, joining a growing list of airlines that expect demand this summer to exceed previous forecasts as the travel industry recovers from the pandemic.
American predicted revenue would rise 11% to 13% from the second quarter of 2019. That easily topped the airline’s earlier forecast of a 6% to 8% increase from 2019.
Still, shares of American, based in Fort Worth, Texas, fell more than 8% in midday trading amid a drop in broad stock indexes.
Delta, Southwest, JetBlue and others have recently raised their revenue forecasts as the number of people traveling in the United States approaches pre-pandemic levels. At the same time, airlines are offering fewer flights than in 2019, helping them to significantly increase average fares.
American said revenue per seat would increase by up to 22% from 2019, easily beating an earlier forecast of 14% to 16%.
“These revenues are offsetting some real cost pressures,” CEO Robert Isom told an investor conference.
Airfares are up nearly 50% from the same time last year, according to figures from banking firm Cowen.
The airline said non-jet costs would increase by up to 11% per seat, which is a slower increase than Delta. American expects to pay nearly $4 a gallon for fuel, nearly double the price it paid three years ago.