American Airlines now sees Q3 revenue flat to prior expectations

American Airlines provided an update regarding its financial and operational guidance for the third quarter of 2023. Fuel prices have increased considerably since the company’s initial third-quarter guidance issued on July 20, 2023. The company now expects to pay an average of between $2.90 and $3.00 per gallon of jet fuel1 in the third quarter. As a result of its continued strong operating performance, the company now expects its third-quarter capacity to be at the high end of its initial guidance, or up approximately 6% to 7% versus the same period in 2022. Total revenue for the third quarter is expected to be approximately flat to prior expectations, with the mid-point of year-over-year TRASM approximately 0.5 points lower compared to previous guidance. Consensus is $13.59B. Third-quarter CASM-ex is now expected to be at the better end of the company’s previous guidance range provided on August 22, 2023.