American Airlines has raised its forecast for Q2 profit than its previous expectations citing strong travel demand and low jet fuel costs.
The airline said it now expected adjusted earnings per share to come in between $1.45 and $1.65, versus its prior estimate of $1.20 to $1.40. The airline has raised its revenue per available seat mile, to be down approximately 1% to 3%, better than the prior guidance of a decrease of 2% to 4%.
“This improvement in unit revenue versus prior guidance is driven by continued strength in the demand environment,” the company said in an 8-K filing.
The airline said it expects to pay about $2.55 - $2.65 per gallon of fuel, versus previous expectations of around $2.65 to $2.75.
Jet fuel costs are on a downward trend, with prices about 40% lower compared to last year.