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American Airlines Expects A Revenue Rise

American Airlines expects a rise of about 17% from 2019. They previously forecasted it around 11-13%. American Airlines stock rose on Thursday after the airline raised its revenue and profit forecasts for the fourth quarter due to strong demand and high fares. 

The stock of American Airlines rose nearly 10% to $16.83, its highest closing price since June, and far outperforming other airlines’ shares, which also rose. American Airlines was the S&P 500’s biggest gainer for the day. In a securities filing, American stated that it expects revenue to increase by up to 17% over the same period in 2019, up from a previous forecast of an 11% to 13% increase compared to the same period three years prior, before the Covid pandemic. 

American estimated that revenue per seat mile increased by 24% over the 2019 quarter, exceeding its previous forecast of 18% to 20%. 

It expects adjusted earnings per share to range between $1.12 and $1.17, up from a previous estimate of 50 cents to 70 cents.