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American Airlines posts record revenue as demand outpaces capacity
Revenue rose 16.3% to a company record $16.7 billion, while capacity increased 5.4%, indicating stronger pricing and revenue per available seat.
American Airlines Group reported a record second quarter, with revenue up 16.3% year over year to an all-time high of $16.7 billion as demand strengthened across premium, corporate, domestic, and international travel, according to Yahoo Finance.
Adjusted earnings were $0.15 per diluted share, topping Wall Street expectations. Passenger unit revenue improved across premium and Main Cabin products, as well as in domestic and every major international region, with premium passenger unit revenue up 13.4%, Main Cabin up 8.8%, and domestic up 10.6%.
The airline said the gap between revenue growth and capacity growth, with capacity up 5.4%, suggested much of the improvement came from stronger pricing and higher revenue per available seat rather than simply adding more flying.
Yahoo Finance also highlighted that American Airlines is leaning on a premium strategy, citing momentum in premium revenue supported by both corporate and premium leisure demand, along with adding premium seats through new Boeing 787-9 and Airbus A321XLR deliveries and retrofits.