American Airlines Forecasts 2026 Profit Above Estimates on Strong Premium Demand

Reuters
Jan 27

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.

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