American Airways sees smaller-than-expected third-quarter loss By Reuters
© Reuters. FILE PHOTO: An American Airlines Boeing 777-300ER takes off from Sydney Airport in Sydney, Australia on October 28, 2020. REUTERS / Loren Elliott
(Reuters) – American Airlines on Tuesday forecast a lower adjusted net loss than expected for the third quarter as the U.S. carrier hopes to capitalize on vacation demand from travelers who haven’t seen friends and family in the past year.
The company’s shares rose 1.1% in pre-trading hours to $ 20.36.
After a strong summer travel season, airlines had to dampen their outlook for the quarter through September as the rapidly spreading delta variant of the coronavirus slowed new bookings and drove up cancellations.
However, the immersion of COVID-19 cases has raised industry hopes that passengers are more confident about flying again.
Excluding items, American expects a net loss of between $ 620 million and $ 675 million for the third quarter. Analysts had expected an average loss of 741.7 million US dollars.
The U.S. carrier expects third-quarter revenue to drop about 25% from 2019, compared to an earlier drop of between 24% and 28%.
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