The carrier expects flight costs to stay high regardless of whether energy prices drop, effectively ending the era of cheaper tickets. American Airlines indicated it may further reduce flight schedules if jet fuel costs remain persistently elevated, a pressure that has already led the company to slash its full year outlook for the third time in six months. The airline now forecasts an adjusted loss between $1.00 and $1.60 per share for the year.
Third quarter revenue reached a record $16.34 billion, up 19.3% from a year ago, though this growth was offset by fuel expenses that jumped 67.5% to $4.64 billion. Fuel costs for the fourth quarter are projected to be $2.8 billion higher year over year, with average prices around $4.70 per gallon. While managed corporate sales rose 27.6% and premium revenue grew 22.9%, the passenger load factor declined 2.6 percentage points to 83.4%.
