American Airlines Raises Unit Revenue Forecast
American Airlines Group Inc has raised its estimate for second-quarter unit revenue.
However, the company said that its second-quarter pre-tax profit would be reduced by about $185 million because it cancelled over 7,000 flights in the quarter.
American Airlines had in April cut its annual profit forecast, blaming an estimated $350 million hit from the grounding of Boeing Co's MAX jets.
Unit Revenue Expectation And Quarterly Pre-Tax Margin Forecast
The company, which has the second-biggest fleet of MAX aircraft in the United States with 24 jets, now expects unit revenue, a measure that compares sales to flight capacity, to increase between 3% and 4% in the quarter that ended in June, compared with its earlier forecast of a rise of between 1% and 3%.
The airline also raised its forecast for quarterly pre-tax margin, excluding certain items, to a range of 8.5% to 9.5%, from 7% to 9%.