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Airlines have in recent months enjoyed a surge in bookings as
countries ease COVID-19 restrictions, encouraging people to take
to the skies after two years of the pandemic-restricted travel.
American Airlines said it now expects revenue for the quarter to
rise between 11% and 13% over pre-pandemic levels, compared with
its prior view of a 6% to 8% increase.
But the Fort-Worth, Texas-based carrier warned that fuel costs
would rise in the period, lifting its expectation for average
fuel expenses to between $3.92 and $3.97 per gallon, from its
previous forecast of $3.59 to $3.64 per gallon.
Fuel is the industry's second-biggest expense after labor, but
major U.S. carries do not hedge against volatile oil prices like
most European airlines.
American Airlines also said it expects capacity in the second
quarter to be at the low end of its prior guidance range.
The company, however, is confident that higher revenue will
offset the rise in costs caused by steeper fuel prices, it said.
(Reporting by Kannaki Deka in Bengaluru; Editing by Aditya Soni)
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