American Airlines stock jumps as Travel Demand soars
American Airlines rebounds in the market on strong demand by travelers!
Carrier reports stronger outlook despite turbulent holiday season for airlines
Tweet on A.A stock fluctuation
Shares of American Airlines were recently up more than 6%, rising for a 10th consecutive session.
It was on pace for its highest close since June, according to @DowJones #airlines pic.twitter.com/egBQ6Mgk6k
— The_Journalbiz (@the_journalbiz) January 12, 2023
FactSet chart on America Airlines stock
U.S. airlines have faced a series of disruptions in recent weeks.
American Airlines Group Inc. AAL 8.57%increase; green up pointing triangle raised its revenue guidance for the recently ended quarter as demand for air travel remained strong through the holiday season, even as travelers contended with higher fares.
The guidance update offers one of the first looks at how a U.S. airline fared during a critical holiday travel period that saw thousands of canceled flights amid winter storms.
Fort Worth, Texas-based American Airlines had already expected fourth-quarter sales to be above pre-pandemic levels. On Thursday, the company said revenue would be 16% to 17% higher than the fourth quarter of 2019, up from its previous guidance of an increase of 11% to 13%.
Shares of American rose more than 5% Thursday morning. Shares of United Airlines Holdings Inc. were up about 4%. Delta Air Lines Inc. DAL 2.84%increase; green up pointing triangle and Southwest Airlines Co. stock rose about 1.5%.
American’s revenue per available seat mile for the quarter is expected to be up 24% versus 2019 levels, topping prior guidance. Airlines have raised prices from 2019 levels as they faced surging fuel and labor costs. Those higher prices helped boost American Airlines’ profit in the recently ended quarter.
