12 Oct 2021
American Airlines Reports Smaller Than Expected Loss for Third Quarter
The Index Today
American Airlines released its latest revenue forecast with a minor adjusted net loss for the remaining quarter. The airline hopes to boost revenue and take advantage of expected growth in demand during the holiday season.
In premarket trading, American Airlines saw shares rise to 1.1% to $20.36. As summer season comes to a close, most airlines had to readjust the outlook for the upcoming quarter as the Delta variant spread. This led to more cancellations of flights and a decline in new bookings.
However, as the number of infections begin to decline, more people are expecting to travel during Christmas season. This has raised hopes for higher demand for flights. American Airlines is expected to declare a loss between $620 million and $675 million in this quarter. This points to a 25% decline in revenue compared to forecast of 24%-28%.