(Reuters) – American Airlines Group Inc on Thursday forecast a higher fourth-quarter profit on strong demand for travel during the key holiday season, sending its shares up more than 3% in premarket trading.
U.S. carriers have benefited from strong consumer demand during the holiday season. Airlines were also able to mitigate some of the higher fuel and labor costs through higher ticket prices.
The carrier’s update comes at a time when a worsening economic outlook coupled with high inflation has sparked concerns about consumer demand.
The company expects to report fourth-quarter adjusted earnings per diluted share between $1.12 and $1.17, compared with its prior guidance of $0.50 to $0.70.
American Airlines now expects revenue to rise between 16% and 17% from the fourth quarter of 2019. It had earlier forecat growth of 11% to 13% in the quarter.
(Reporting by Kannaki Deka and Nathan Gomes in Bengaluru; Editing by Shinjini Ganguli)
