(Reuters) – American Airlines on Thursday forecast sharply higher profit for the full year and beat estimates for quarterly earnings on buoyant demand for air travel.
The carrier expects an adjusted profit of $2.50 and $3.50 per share for 2023, up from 50 cents per share a year earlier.
Major airlines are trying to cash in on a travel boom since the pandemic eased its grip on the world, making the industry one of the few bright spots against the backdrop of runaway inflation, rising interest rates and a looming recession.
Industry executives have said that they don’t see any signs of slowing demand in the face of a potential slowdown.
Planes are packed with passengers, giving the industry more room to raise air fares, which have helped overcome the impact of rising energy and labor expenses.
The Fort Worth, Texas-based carrier reported an adjusted profit of $827 million, or $1.17 per share, for the quarter ended Dec. 31, compared with a loss of $921 million, or $1.42 per share, a year earlier.
Analysts on average had expected the airline to post a profit of $1.14 per share, according to Refinitiv IBES data.
(Reporting by Aishwarya Nair in Bengaluru; Editing by Anil D’Silva)
