American forecasts second-quarter profit on soaring travel demand, stock surges

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American Airlines Boeing 787-9 Dreamliner takes off from Los Angeles international Airport on November 11, 2020 in Los Angeles, California.
AaronP | Bauer-Griffin | GC Images | Getty Images

American Airlines on Thursday forecast a second-quarter profit as strong travel demand helps it cover its soaring fuel costs.

American is the third major airline to report results. United Airlines said Wednesday it expects to return to a profit this year thanks to a surge in bookings and fares, echoing similar comments a week earlier from Delta Air Lines. United’s forecast sent airline stocks higher in after-hours trading Wednesday.

American shares surged after reporting results and were up more than 8% in premarket trading, up from a roughly 5% increase fueled by United’s results. United was also up 8%.

Here’s how American performed in the first quarter compared with what Wall Street expected, based on average estimates compiled by Refinitiv:

  • Adjusted earnings per share: a loss of $2.32 versus an expected loss of $2.40
  • Total revenue: $8.9 billion versus expected $8.826 billion.

American executives will hold a call with analysts and media to discuss results at 8:30 a.m.

This is breaking news. Check back for updates.

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