American Airlines Group Inc (NASDAQ: AAL) is in the green on Thursday after the air carrier raised its guidance for the current quarter.
CEO Robert Isom’s remarks on CNBC
The airline now forecasts a 17% increase in revenue versus pre-pandemic – a significant leg up compared to its previous outlook for an up to 13% increase. Speaking with CNBC this morning, CEO Robert Isom said:
We’ve done nice work on reliability over the holidays. From a profitability perspective, we’ve put the planes in the right places. Demand has been strong throughout the year, accelerated in the fourth quarter.
On the earnings front, American Airlines is now calling for a number between $1.12 a share and $1.17 a share. Before today, it was expecting 70 cents only at the top end of the range.
The Nasdaq-listed firm is set to report its fourth-quarter results on January 26th.
American Airlines expects a strong 2023
Also on Thursday, the airline holding company said its revenue per seat mile will likely come in up 24% in Q4 versus the same quarter of 2019. It had previously called for up to a 20% increase.
The new outlook suggests American Airlines did well during the typically busy holiday season despite harsh weather. CEO Isom added:
We did a remarkable job of making sure we set the airline up for recovery. We were back faster than anybody else in the industry. We had the best completion factor performance and departure performance in the industry.
The Chief Executive expects this year to be a strong one for American Airlines that’s committed to a $15 billion decline in net debt by 2025. The airline stock has gained roughly 30% over the past two weeks.
The post American Airlines lifts Q4 guidance on ‘strong demand’ appeared first on Invezz.
