Jan 27 (Reuters) - American Airlines forecast 2026 profit above analysts' expectations on Tuesday, buoyed by a recovery in corporate travel and strong demand for high-margin premium services.
American Airlines shares gained 3% in premarket trading.
The carrier expects its full-year adjusted profit per share in the range of $1.70 to $2.70, compared with analysts' average estimate of $1.97 per share, according to data compiled by LSEG.
With lower-income travelers feeling the strain of tighter budgets amid a challenging macroeconomic backdrop, airlines are increasingly turning to affluent customers ready to pay top dollar for high-margin premium offerings.
A post-pandemic shift in consumer behavior has found airlines firming up their bets on premium services.
American Airlines has been stepping up its premium upgrades to catch up with rivals Delta Air Lines and United Airlines and capture a bigger share of surging demand for higher-end travel.
Corporate travel, on the other hand, has also shown improvement.
The airline's total operating revenue in the fourth quarter rose 2.5% to about $14 billion.