After two profit warnings this year, American Airlines has issued an optimistic forecast for the full year.
Earnings per share adjusted for special items are expected to be between $1,35 and $1,60, the company announced on Thursday in Fort Worth, Texas. This is an increase from the previous estimate by airline CEO Robert Isom, who had forecast a maximum of $1,30.
Despite revenues of over $13,6 billion in the third quarter, an increase of more than one percent year-on-year, American Airlines posted a loss of $149 million. Although the loss was smaller than the $545 million in the same period last year, it was burdened by special costs from collective bargaining with pilots and flight attendants. Without these special items, profits would have fallen by 22 percent to $205 million.
The increase in the annual forecast indicates that American Airlines plans to regain lost market share and attract more business customers. To this end, new contracts have been negotiated with large travel agencies and corporate customers to strengthen customer loyalty in this important segment.