American Airlines (NASDAQ:AAL) expects its adjusted earnings for the current quarter to come in higher than previously expected, lifted by lower fuel costs and strong demand in the spring quarter.
The company said it now expects second-quarter adjusted earnings of $1.45 a share to $1.65 a share, up from guidance offered in April for an adjusted profit of $1.20 a share to $1.40 a share. The second quarter typically ends around June 30.
Revenue per available seat mile — an industry metric used to gauge efficiency — is now expected to fall 1% to 3% from the same quarter last year, compared with prior guidance for a drop of 2% to 4%.
Average fuel price for the quarter is expected to be $2.55 a gallon to $2.65 a gallon, down from a previous range of $2.65 a gallon to $2.75 a gallon.