© Reuters. An American Airlines airplane is seen at John F. Kennedy International Airport during the spread of the Omicron coronavirus variant in Queens, New York City, U.S., December 26, 2021. REUTERS/Jeenah Moon
(Reuters) -American Airlines on Thursday forecast sharply higher profit for the full year and beat estimates for quarterly earnings on buoyant demand for air travel.
Shares of the airline were up 2% at $16.55 in premarket trading after the company said it was expecting an adjusted profit of $2.50 and $3.50 per share for 2023, up from 50 cents per share a year earlier.
Major airlines are trying to cash in on a travel boom since the pandemic eased its grip on the world, making the industry one of the few bright spots against the backdrop of runaway inflation, rising interest rates and a looming recession.
Industry executives have said that they do not see any signs of slowing demand in the face of a potential slowdown.
“As we turn our attention to 2023, we will continue to prioritize reliability, profitability and debt reduction,” Chief Executive Robert Isom said.
The carrier, which along with its regional partners handled more than 475,000 flights in the quarter through December, said it expects to break even on a per-share basis in the current three-month period.
The Fort Worth, Texas-based carrier reported an adjusted profit of $827 million, or $1.17 per share, for the quarter ended Dec. 31, above analysts’ estimate of $1.14 per share, according to Refinitiv IBES data.
Operating revenue rose about 40% to $13.19 billion, slightly below the estimate of $13.20 billion.
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