American Airlines shares rose after the carrier raised its outlook for revenue per available seat mile. As Fred Katayama reports, this comes one week after Delta expressed optimism over its outlook.
The skies are looking brighter for U.S. Airlines. American Airlines lifted its forecast for a key financial metric because fliers are paying higher fares. The carrier now forecasts its revenue per available seat mile will rise about 5 to 6 percent year over year. That metric compares sales to flight capacity. Prompting the airline to raise its outlook: strong performance in its U.S., Caribbean and Central-South America regions. American Airlines shares ascended on that news, adding to their gain of over 10 percent this year. But the stock has underperformed those of its peers. Buckingham Research Group analyst Daniel McKenzie said, "A refresh of the booking data this morning suggests the decent trends we're seeing in the second quarter extend into the third quarter." Just last week, shares of rival Delta Air Lines got a lift after it said its revenue metric would be near the upper end of its quarterly forecast.