American Airlines: Strong demand mitigates impact of higher fuel prices
American Airlines Group Inc. AAL | 0.00 |
CHICAGO, May 27 (Reuters) - American Airlines Chief Executive Robert Isoum said the group is sticking to its full-year profit forecast despite soaring fuel prices, explaining that increased revenue and strong demand for premium services and corporate travel are helping to absorb the impact of higher oil costs.
Speaking at the Bernstein Investors Conference on Wednesday, Izum added that there was "no doubt" that demand was moving in an uneven pattern, with high-income travelers outperforming their middle- and low-income counterparts.
However, he noted that the travel sector is experiencing growth across various income brackets, and that the company's bookings were nearly 80 percent full for the second quarter, with corporate travel up 13 percent year-on-year, and described demand for leisure travel as "very strong".
American Airlines shares rose two percent in morning trading.
Last month, the group lowered its 2026 profit forecast due to rising jet fuel costs, noting that it expects its fuel bill to increase by more than $4 billion this year.
