American Airlines raises revenue estimates

Eleanor Steed
By Eleanor Steed July 13, 2017 11:54

American Airlines raises revenue estimates

American Airlines Group’s total revenue passenger miles (RPMs) were a record 21.0 billion, up 0.8 percent versus June 2016. Total capacity was 24.9 billion available seat miles (ASMs), up 1.1 percent versus June 2016. Total passenger load factor was 84.7 percent, down 0.2 percentage points versus June 2016.

The company expects its second quarter 2017 total revenue per available seat mile (TRASM) to be up approximately 5 percent to 6 percent year-over-year. This compares to prior guidance which had TRASM up 3.5 percent to 5.5 percent. The improvement in TRASM from prior guidance is driven primarily by higher passenger yields, with particular strength in the Domestic, Central/South American, and Caribbean regions. The company now expects its second quarter pre-tax margin excluding special items to be between 13 percent and 14 percent versus its previous guidance of 12 percent to 14 percent.

Shares in American rose as much as 3.6 percent following the announcement.

Separately, American has confirmed that it will end its code-share agreements with both Qatar Airways and Etihad Airways amid a trade dispute with the two Middle Eastern carriers.

American says the decision to cancel the code-sharing deals would not have a material financial impact, which called the move an “extension of our stance against the illegal subsidies that these carriers receive from their governments.”

Eleanor Steed
By Eleanor Steed July 13, 2017 11:54