American Airlines (NASDAQ:AAL) reported a $483-million profit for the third quarter and joined rivals in forecasting resilient travel demand, as the airline industry continues to shrug off concerns about an economic slowdown.
American’s revenue rose to a record $13.46 billion in the three months ended Sept. 30, up 13% from 2019 despite flying nearly 10% less, a sign passengers are still traveling despite higher fares. Its quarterly sales came in slightly ahead of analysts’ estimates.
“Demand remains strong, and it’s clear that customers continue to value air travel and the ability to reconnect post-pandemic,” CEO Robert Isom said in an employee note Thursday after the company reported results.
Isom said on an earnings call that the airline will likely get back to 95% to 100% of its 2019 capacity next year, an expansion he said is limited by slower aircraft deliveries and a pilot shortage on regional airlines.
American said it expects the strength to continue through the end of the holiday season. For the fourth quarter it’s expecting total revenue to be up as much as 13% over three years ago, before the Covid pandemic. It forecast its capacity during the quarter to be down 5% to 7% from 2019 and is projecting adjusted per-share earnings of between 50 cents and 70 cents.
Adjusted earnings per share came in at 69 cents vs. an expected 56 cents, on total revenue of $13.46 billion vs. an expected $13.42 billion.
AAL shares inched up seven cents to open Thursday at $14.06.
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