American Airlines Group Inc. trimmed its expansion plans for this year in an effort to raise fares.
Capacity for the full year will increase 1.5 percent, half a percentage point less than its prior guidance of 2 percent, the Fort Worth, Texas-based airline said in a statement Tuesday. The change applies to international and domestic regions.
Investors for more than a year have encouraged U.S. carriers to keep growth in check to better match travel demand and allow them to raise ticket prices. Paring expansion also can help reverse declining revenue from each seat flown a mile, a key industry measure.
American said Tuesday that it expected that the figure, also known as unit revenue, would decline 2 percent to 3 percent in the third quarter from a year earlier, an improvement from its previous forecast for a decline of 3 percent to 5 percent.
American rose 2.2 percent to $39.75 at 8:49 a.m. in New York premarket trading.
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This article was written by Mary Schlangenstein from Bloomberg and was legally licensed through the NewsCred publisher network.