American Airlines, based in Fort Worth TX, reported an increase in earnings during this year’s second financial quarter as a result of rising travel demand and lower fuel prices.
“Revenue of $12.19 billion was 37% higher than the same period a year earlier,” a recent CNBC report explains. “The carrier’s net marks a drastic improvement from the first quarter of 2022 when American lost $1.64 billion, or $2.52 per share.”
During a forecast call, the airline projected its per-share earnings to be between $1.45 and $1.65, reflecting an increase from the previous forecast of $1.20 to $1.40 per share.
The airline now projects “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%,” according to a recent press release.
The airline’s shares contributed more than 1% to trading on Wednesday last week. An additional report will be released during the second financial quarter at the end of July.
News of the shares follows a $10 million profit posting by American during the first quarter, during which the company’s overall revenue increased by 37% to $12.19 billion.
The figures exclude charges related to debt refinancing. American earned an adjusted 5 cents per share during the first quarter, reflecting analyst expectations.
For the second quarter of the year, the company now projects its per-share earnings to be $1.20 to $1.40 and expects its revenue per available seat mile to be 2% to 4% lower than last year on capacity up as much as 5.5%.
The fuel and demand factors have made up for the losses caused by late aircraft deliveries from manufacturers, reported earlier this year by CEO Robert Isom.
“In terms of the aircraft manufacturers, both Boeing and Airbus, they have to do a better job,” Isom said in an interview with CNBC’s “Squawk Box” on Thursday. “When we don’t receive a delivery on time, guess what? We’re going out and having to cancel flights. That affects thousands of customers. We’ve got to hold them accountable.”