by Donald Wood
Last updated: 12:31 PM ET, Fri June 3, 2022
American Airlines became the latest carrier in the United States to announce it would increase its financial forecast for quarterly revenue, a positive sign for travel's bounce back.
During a conference call on Friday, American executives revealed expectations that revenue for the three months ending in June would rise between 11 and 13 percent over pre-pandemic levels, compared with its prior view of a six to eight percent increase.
While the increase in demand has led to higher revenue, fuel cost increases have forced carriers to increase airfare. American said it expected fuel expenses to average between $3.92 and $3.97 per gallon in the second quarter, up from its previous forecast of $3.59 to $3.64 per gallon.
The positive income expectations come as concerns have been raised about the short-term outlook for the airline industry as decades-high inflation and signs of a slowdown in the economy continue to impact confidence.
Earlier this week, Delta Air Lines raised its revenue outlook for this second quarter and said the adjustment would put it at 2019 pre-pandemic levels, due in part to pent-up demand and despite a surge in prices for airline tickets, lodging and car rentals.
Southwest Airlines also reported a resurgence in bookings in recent months.
In May, a new study from the International Air Transport Association (IATA) found that passenger numbers grew in March, indicating that air travel around the world continues to recover from the impact of the coronavirus pandemic and related travel restrictions.
Data showed total traffic measured in revenue passenger kilometers (RPKs) climbed 76 percent compared to March 2021, but was still down around 41 percent from the 2019 pre-pandemic levels.
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