American Airlines shares rose after the carrier forecast better revenue and a narrower loss than previously estimated for the second quarter, the latest sign that airlines are recovering from the coronavirus pandemic’s toll on travel.
The Fort Worth, Texas-based carrier said Tuesday that it expects to post a “slight” pretax profit for the second quarter. It said it will likely report results ranging from a net loss of $35 million to a net profit of $25 million for the three months ended June 30. Excluding net special items, it expects a net loss of up to $1.2 billion and an adjusted per-share loss of between $1.67 and $1.76. That compares with analysts estimates of $2.44 a share.
“We are clearly moving in the right direction,” CEO Doug Parker and President Robert Isom said in a staff note.
American’s stock was up close to 2% in after-hours trading Tuesday.
Air travel has bounced back sharply since the spring, when Covid-19 vaccines rolled out widely around the U.S. and officials lifted restrictions that shuttered attractions from indoor dining to theme parks.