Why American Airlines (AAL) Shares Are Trading Higher Today - American Airlines Gr (NASDAQ:AAL)

American Airlines Group, Inc AAL said it expects fourth-quarter revenue to be better than expected on robust demand for air travel through the holiday season.
American Airlines expects revenue to rise between 16% - 17% from Q4 of 2019, above the consensus of $12.70 billion, the Wall Street Journal reported. The earlier growth guidance was 11% - 13%.
The airlines expected adjusted EPS of $1.12 - $1.17, up from the prior guidance of $0.50 - $0.70, above the consensus of $0.60.
Airlines also managed to mitigate some of the higher fuel and labor costs through higher ticket prices, Reuters reports.
Revenue per available seat mile will likely be up 24% versus 2019, topping prior guidance.
Costs, excluding fuel and special items, were likely to increase 10% above 2019 levels, up from the prior forecast of 8% - 10%.
The airline said it flew 6.1% less than in the same period in 2019, compared with the 5% - 7% lower capacity that it had expected.
The update coincided with a worsening economic outlook and high inflation, fueling concerns about consumer demand.
Price Action: AAL shares traded higher by 5.02% at $16.11 in the premarket on the last check Thursday.

Why American Airlines Shares Are Flying Higher Today