Reuters File Photo: An American Airlines Boeing 7-0000 ER Plane 2 Australia takes off from Sydney Airport, Australia in October, 2020. Reuters / Lauren Elliott
(Reuters) – American Airlines (Nasdaq 🙂 forecast lower-than-expected third-quarter losses on Tuesday and indicated improved bookings for the rest of the year, increased holiday demand and the lifting of travel bans.
U.S. carriers changed their outlook for the September quarter as the Delta Coronavirus variant slowed down and canceled new bookings, but the recent decline in Covid-1 cases has raised hopes that passengers will be confident to fly again.
The Biden administration’s plan to reopen the United States in November for air travelers from Europe has added optimism. The Trans-Atlantic route is one of the most profitable roads in the world and accounted for up to 17% of 2019 passenger revenue for the three major U.S. carriers.
American Airlines said it was “planning a strong peak travel period in the fourth quarter.” Shares of the company rose 1% to .3 20.32 in morning trade.
The company expects net losses excluding items in the third quarter to be 620 million to $ 675 million. Analysts expect an average loss of $ 741.7 million, according to referential data.
Compared to 2019, revenue is expected to decline by 25% this quarter. It previously predicted a fall between 24% and 28%.
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