American Airlines (AAL Stock) shares surged to new highs on Tuesday after the airline company announced that it anticipates third-quarter revenues to be significantly higher than pre-pandemic levels. The company stated that it expects higher ticket prices to help offset a decline in overall flight capacity.
American Airlines (NASDAQ:AAL)stated that its revenue for the three months ending in September is anticipated to have increased by 13% over the same period in 2019 to around $13.5 billion. This is a firmer tally than its previous prediction of a jump between 10% and 12%.
AAL Stock Revenue Projection
It is anticipated that total revenue per available seat mile, a key industry metric, will increase by 25% from 2019 levels, which will more than offset a 9.6% reduction in overall capacity, as stated by American Airlines (AAL Stock) in an investor update provided in advance of its formal earnings release on October 20.
During the pre-market trading session, shares of American Airlines (AAL stock) were marked 5.3% higher, indicating a price of $12.69 per share when the market opened.
Delta Air Lines (DAL) is scheduled to release its earnings for the third quarter on Thursday before the opening of trade. Industry experts anticipate the company will post a bottom line of $1.54 per share on overall revenues of around $12.88 billion.
Following a significant drop in the price of jet fuel and rising demand for travel, United Airlines Holdings (UAL), a competitor, increased its revenue growth projection for the third quarter last month.
United Airlines has stated that it anticipates third-quarter capacity to trend “higher than originally predicted” at levels that are just 10% to 11% lower than in the period of 2019 before the pandemic.
United Airlines anticipates that operating revenues will likely be around 12% higher than they were in the third quarter of 2019 due to the combination of robust demand and more competitive pricing.
Featured Image- Megapixl @ NycRuss
Author Faith Yakubu 
