General Industry

American Airlines Raises Unit Revenue Forecast

By Dave Simpson
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%.

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