(Finance) – American Airlines has communicated that it foresees a higher second quarter revenue increase than previously indicated, “driven by the continued strength of demand and the pricing environment.” The US airline now expects revenue they will increase between 11% and 13% compared to pre-pandemic levels, when the previous forecast was for an increase from 6% to 8%. The capacity, compared to the second quarter of 2019, will be in the low part of the previous guidance range communicated.
The carrier expects the to continue increases in the price of fuel of aircraft will result in a greater increase in fuel costs in the second quarter than previously indicated (average fuel costs will be between $ 3.92 and $ 3.97 per gallon vs $ 3.59-3.64 per gallon previously ). However, American Airlines estimates that solid revenue will offset these higher costs, resulting in a increase in adjusted pre-tax margin from 4% to 6% (compared to previous estimates from 3% to 5).