Texas’ American Airlines forecasts smaller Q3 losses as US sets to lift EU travel ban

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Texas’ American Airlines forecasts smaller Q3 losses as US sets to lift EU travel ban

American Airlines, Inc., the world’s largest airline by fleet size, revenues alongside the number of passengers carried, headquartered in Fort Worth, Texas, had projected a smaller-than-anticipated loss over Q3, 2021 on an adjusted basis, while the aviation industry giant also had raised bookings outlook for the rest of 2021 ahead of an all-important holiday season that includes Black Friday, Christmas and New Year.

On top of that, as the Biden Administration has been brewing off an option to reopen the US to air travellers from Europe as early as by November, optimism spurs up over a sharp rebound in demands in air travel, since the Trans-Atlantic route alone accounts for more than 17 per cent passenger revenues for ‘big three’ aviation giants in the US.

Meanwhile, expressing an out-and-out optimism over a swift pick-up in air traffics over Q4, 2021, American Airlines said in a statement, “… (American Airlines) is planning for a robust peak travel period in the fourth quarter.

Besides, following release of latest American Airlines forecast for fourth quarter of the year, the Texas-based aviation industry giant’s shares’ prices had perked up more than 0.80 per cent to $20.29 apiece after surging over 1.0 per cent in morning US trading hours.

American Airlines forecasts upbeat fourth quarter earnings

According to American Airlines, the Fort Worth-headquartered aviation giant had forecasted its Q3, 2021 losses to remain between $620 million and $675 million, beating an analysts’ expectation of a loss of $741.7 million, IBES data from Refinitiv had unveiled.

Aside from that, American Airlines’ net revenue over third quarter of 2021 is expected to take a header of 25 per cent, compared to the same time a couple of years earlier, which has been well in line with a prior forecast.