American Airlines lifts Q4 guidance on ‘strong demand’

American Airlines Group Inc (NASDAQ: AAL) is in the green on Thursday after the air carrier raised its guidance for the current quarter.

CEO Robert Isom’s remarks on CNBC

The airline now forecasts a 17% increase in revenue versus pre-pandemic – a significant leg up compared to its previous outlook for an up to 13% increase. Speaking with CNBC this morning, CEO Robert Isom said:

On the earnings front, American Airlines is now calling for a number between $1.12 a share and $1.17 a share. Before today, it was expecting 70 cents only at the top end of the range.

The Nasdaq-listed firm is set to report its fourth-quarter results on January 26^th.

American Airlines expects a strong 2023

Also on Thursday, the airline holding company said its revenue per seat mile will likely come in up 24% in Q4 versus the same quarter of 2019. It had previously called for up to a 20% increase.

The new outlook suggests American Airlines did well during the typically busy holiday season despite harsh weather. CEO Isom added:

The Chief Executive expects this year to be a strong one for American Airlines that’s committed to a $15 billion decline in net debt by 2025. The airline stock has gained roughly 30% over the past two weeks.