American Airlines forecasts strong profit for December quarter
Texas-based carrier reported an adjusted profit of $478 million
Charles Payne to investors: Rallies could come from earnings
FOX Business host Charles Payne provides insight on investing in the stock market during record-high inflation on 'Making Money.'
American Airlines Group Inc. expects to report a profit in the December quarter above Wall Street estimates, the company said on Thursday, helped by a strong rebound in travel as the demand shows no signs of cooling despite high airfare.
Major U.S. carriers are optimistic that the recovery trends will continue as the reopening of borders and strengthening of the dollar has encouraged Americans to travel oversees.
Corporate travel, that has been the slowest to recover, was also boosted due to office reopenings.
Shares of American Airlines were up about 3% at $14.43 in premarket trade.
An American Airlines Airbus A321-200 plane takes off from Los Angeles International airport (LAX) in Los Angeles, California, U.S. March 28, 2018. (Reuters/Mike Blake) (Reuters/Mike Blake / Reuters Photos)
DELTA AIR LINES SEES STRONG HOLIDAY TRAVEL DESPITE INFLATION
The carrier said it expects adjusted profit between 50 and 70 cents per share for the fourth quarter ending December, compared with analysts' estimate of 22 cents per share, according to Refinitiv IBES data.
American Airlines reported an adjusted profit of $478 million, or 69 cents per share, for the quarter ended Sept. 30, compared with an adjusted loss of $641 million, or 99 cents per share, a year earlier.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The Fort Worth, Texas-based airline's operating revenue rose to about $13.46 billion from about $8.97 billion a year earlier.