American Airlines reported Thursday a $483 million profit for the third quarter as travel demand holds amid concerns about an economic slowdown.
American’s revenue rose to a record $13.46 billion on the third quarter, for the three-month period ended Sept. 30, up 13% from 2019. The company’s quarterly results 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,” American Airlines CEO Robert Isom said to employees after results were released.
The company’s shares were down about 2% in morning trading.
As passengers are still traveling despite higher fares, the airline expects its flying capacity to move closer to pre pandemic levels in the current quarter. The company is expecting the market’s strength to continue through the end of the holiday season.
The airline, which is scheduled to move its headquarters to Texas later this year, said air travel demand for domestic and short-haul international travel will remain strong. Also, laxer travel restrictions and testing requirements will further boost international traffic.
All major airlines are seeing stronger revenues compared with three years ago, even as a worsening economic outlook has sparked worries about travel spending.
American said debt reduction remained a “top priority”, as the company is on track to reduce total debt levels by $15 billion by the end of 2025.