Skift

Higher Domestic Fares Boost American Airlines’ Outlook

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    Those last-minute walkup fares on domestic trips are a bonanza for airlines such as American. The airline tightened capacity and raised some fares to offset soaring fuel prices.

    American Airlines Group Inc. revised a key measure of pricing power to the high end of its previous forecast last quarter even as disruptions from Hurricane Florence reduced pretax profit by $50 million.

    Revenue from each seat flown a mile rose about 2 percent to 3 percent from a year earlier, mainly because of higher fares on domestic tickets sold just before travel, the airline said in a statement Tuesday. American had said the gain could be as little as 1 percent. Florence forced the grounding of 2,100 flights as it moved through the Southeast, causing widespread flooding.

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    This article was written by Mary Schlangenstein from Bloomberg and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

    Photo Credit: American Airlines boosted its outlooks despite the adverse impact of Hurricane Florence. Bloomberg

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