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American Airways (AAL) 3Q 2022


An American Airways Boeing 787-9 Dreamliner approaches for a touchdown on the Miami Worldwide Airport on December 10, 2021 in Miami, Florida.

Joe Raedle | Getty Photos

American Airlines reported a $483 million revenue for the third quarter and joined rivals in forecasting resilient journey demand, because the airline trade continues to shrug off issues about an financial slowdown.

American’s income rose to a report $13.46 billion within the three months ended Sept. 30, up 13% from 2019 regardless of flying almost 10% much less, an indication passengers are nonetheless touring regardless of increased fares. Its quarterly gross sales got here in barely forward of analysts’ estimates.

“Demand stays sturdy, and it is clear that clients proceed to worth air journey and the power to reconnect post-pandemic,” CEO Robert Isom stated in an worker be aware Thursday after the corporate reported outcomes.

Isom stated on an earnings name that the airline will possible get again to 95% to 100% of its 2019 capability subsequent yr, an enlargement he stated is proscribed by slower plane deliveries and a pilot shortage on regional airways.

American stated it expects the energy to proceed via the top of the vacation season. For the fourth quarter it is anticipating complete income to be up as a lot as 13% over three years in the past, earlier than the Covid pandemic. It forecast its capability through the quarter to be down 5% to 7% from 2019 and is projecting adjusted per-share earnings of between 50 cents and 70 cents.

The corporate’s shares had been down about 2% in morning buying and selling.

This is how American carried out within the third quarter, in contrast with Wall Avenue expectations in response to Refinitiv consensus estimates:

  • Adjusted earnings per share: 69 cents vs. an anticipated 56 cents.
  • Whole income: $13.46 billion vs. an anticipated $13.42 billion.

American had raised its forecast for third-quarter income final week, sending shares increased.

Rivals United Airlines and Delta Air Lines additionally predicted that they might be profitable via the top of the yr due to sturdy bookings and fares.

The trade has seen sturdy journey demand, properly into the off-peak fall season, as customers proceed to fly and, in lots of instances, pay greater than they had been in 2019. All three main airways have touted stronger unit revenues in contrast with three years in the past, earlier than the pandemic, a development that is serving to them greater than offset an increase in prices.

American’s gasoline invoice almost doubled from a yr in the past to greater than $3.8 billion, whereas labor prices rose 12% to $3.4 billion.

The Fort Value, Texas-based airline stated its prices per accessible seat mile will possible rise 8% to 10% within the final three months of the yr over the identical quarter in 2019 and, for the complete yr, as a lot as 13% over three years in the past.



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