American Airlines hikes quarterly revenue, profit estimates after strong fourth quarter

American Airlines hikes quarterly revenue, profit estimates after strong fourth quarter

Planes are seen at Charlotte Douglas International Airport on December 28, 2022 in Charlotte, United States.

Peter Zay | Anadolu Agency | Getty Images

American Airlines shares rose nearly 5% in premarket trading Thursday after the carrier hiked its revenue and profit estimates for the fourth quarter thanks to strong demand and high fares.

American estimates revenue rose as much as 17% over 2019, up from a previous forecast of an 11% to 13% increase over the period three years earlier, before the Covid pandemic.

American said revenue per seat mile likely climbed 24% in the quarter from 2019, above its prior forecast of 18% to 20%.

It expects to report adjusted earnings per share of between $1.12 and $1.17, up from its previous estimate of between 50 cents and 70 cents.

The update Thursday is the first indication of how a major airline coped with a rocky end of the year, when severe weather sparked mass cancellations around the U.S. during the busy holiday travel season. American is scheduled to report full results on Jan. 26.

Delta Air Lines is set to announce quarterly results Friday morning. Its shares were up more than 2% in premarket trading.