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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