American Airlines and Southwest Airlines have revised their fourth-quarter revenue forecasts, citing strong demand and higher fares, leading to increased shares in both carriers. In a securities filing, Southwest stated that it expects unit revenue for the quarter to rise between 5.5% and 7%, beating its earlier forecast of a maximum 5.5% increase. The airline attributed this improvement to its network changes aimed at eliminating unprofitable flights, which are yielding positive results.
Southwest also announced plans to complete its first sale-leaseback deal in the first quarter of 2025. American Airlines, on the other hand, expects unit revenue for the last three months of the year to be on par with an increase of up to 1% compared to the same period in 2023.
The carriers’ adjusted earnings estimates have been revised upward, with American’s new range set between 55 cents and 75 cents per share. Additionally, American has chosen Citi as its sole credit-card provider, replacing Barclays.
JetBlue Airways also boosted its revenue forecast for the quarter, while announcing plans to further cut unprofitable routes and make changes to its summer 2025 Europe schedule later this week.
Source: https://www.cnbc.com/2024/12/05/southwest-american-raise-sales-outlooks-shares-jump.html