American Airlines reports results on October 20th. However, today it preannounced that its third-quarter sales are likely better than previously expected.
The company said revenue for the quarter that ended September 30 will be up 13% from Q3 2019, above its July forecast of a 10%-12% increase. The strong summer travel demand helped it cover rising costs. 💪
Higher prices have been a theme for airline stocks all summer. That’s helped offset a decline in volumes as they continue to operate below capacity due to labor shortages.
As slowing demand makes its way through the economy, investors will be watching closely to see how the industry’s profits hold up. For now, though, $AAL shares were a bright spot in today’s red tape, rising 1.74%. 💚
