Welcome to Extreme Investor Network, where we keep you up-to-date on the latest business news and trends. Today, we are excited to share with you some insightful information about American Airlines and its recent performance in the third quarter.
American Airlines recently posted a third-quarter loss but surprised investors by raising its profit forecast for the year. CEO Robert Isom attributed this success to the company’s sales strategy shift earlier in the year, which is now proving to be a smart move.
In a recent earnings release, Isom stated that the aggressive action taken to reset the sales and distribution strategy has paid off, with positive feedback from travel agencies and corporate customers. The company now expects to earn between 25 cents and 50 cents a share on an adjusted basis for the fourth quarter, surpassing analyst expectations.
Even in the face of challenges, American Airlines managed to post record revenue of $13.65 billion for the third quarter, narrowing its net loss compared to the previous year. However, unit revenue dropped 2% in the quarter.
Looking ahead to the fourth quarter, American Airlines anticipates that unit revenue will likely drop between 1% to 3% compared to last year, with capacity increasing up to 3% year-over-year.
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