Tags: American | revenue | margin | airline

American Boosts Margin Forecast, Tightens Unit Revenue Outlook

Wednesday, 09 Jul 2014 09:28 AM

American Airlines Group Inc. said it expects a second-quarter pretax margin of 12 percent to 13 percent, above its prior forecast, and tightened its outlook for increased unit revenue.

American, the world’s biggest carrier, previously projected a pretax margin excluding special items in the range of 10 percent to 12 percent. Revenue from each seat flown a mile, a key industry measure, should rise 5.5 percent to 6.5 percent from a year ago, the carrier said in a statement today. That compared with a prior forecast of 5 percent to 7 percent.

The stock rose 5.3 percent in early trading to $42.40 at 8:24 a.m. in New York.

Shares of U.S. carriers fell last week after Delta Air Lines Inc. reported that excess capacity in some international markets had eroded fares. Europe’s two-biggest carriers, Air France-KLM and Deutsche Lufthansa AG, have made similar remarks.

American Chief Executive Officer Doug Parker yesterday said travel demand remains good worldwide, with no “material pockets of weakness.”

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American Airlines Group Inc. said it expects a second-quarter pretax margin of 12 percent to 13 percent, above its prior forecast, and tightened its outlook for increased unit revenue.
American, revenue, margin, airline
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2014-28-09
Wednesday, 09 Jul 2014 09:28 AM
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