American Airlines raised its adjusted earnings outlook for the second quarter thanks to strong travel demand and lower fuel prices.
Adjusted per-share earnings will come in between $1.45 and $1.65, American estimated Wednesday, up from a previous forecast of $1.20 to $1.40 per share. The Fort Worth, Texas-based airline said it’s now expecting unit revenues in the three months ending June 30 to come in 1% to 3% lower than the same period last year, an improvement from a prior forecast for a decline of as much as 4%.
American’s shares were up close to 1% in afternoon trading while the S&P 500 was down.
American Airlines CEO Robert Isom is scheduled to speak at the Bernstein Strategic Decisions Conference at 4:30 p.m. ET on Wednesday.
He will likely face questions about a new preliminary labor agreement with pilots and whether the carrier will appeal a federal judge’s ruling this month that knocked down American’s partnership in the Northeast with JetBlue Airways.
The airline is scheduled to report results for the second quarter at the end of July.