HomeIndustriesAmerican Airlines Reports $1.3 Billion Profit in Q2, Raises 2023 Profit Forecast

American Airlines Reports $1.3 Billion Profit in Q2, Raises 2023 Profit Forecast

American Airlines released its second-quarter earnings on Thursday, reporting a $1.3 billion profit and raising its 2023 profit forecasts.

The airline company previously predicted a $2.50 to $3.50 per share earnings for the year but is now expecting to earn $3 and $3.75 per share by the end of 2023. This is in line with estimates of $3.10 by Wall Street analysts.

American benefited from the strong travel demand in recent months as well as significant drops in the prices of jet fuel. However, the company expects to give up some of the $1.3 billion in savings towards increased labor costs.

“Over time, we are going to run a profitable business,” said American CEO Robert Isom during a conference with analysts and reporters. “Ultimately, it will take more revenue to pay for higher costs.”

American topped the analysts’ estimates for Q2 revenue, bringing in $14.06 billion versus $13.74 billion expected. Still, the company predicts that its revenue per seat will take a dip in the third quarter due to an increased number of flights, something that didn’t sit well with analysts and investors.

The shares of American Airlines dropped by 6.02% on Thursday, trading at $17.48 compared to Wednesday’s close price of $18.60. The company’s stock has been almost 40% year-to-date.

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