On July 25, 2024, a Southwest Airlines plane took off from Hollywood Burbank Airport in Burbank, California.
Mario Tama | Getty Images
Southwest Airlines and American Airlines An upgrade to fourth-quarter forecasts on Thursday cited strong demand and rising fares, sending airline shares higher.
Southwest said fourth-quarter unit revenue could rise 5.5% to 7% from last year, up from its previous forecast of no more than 5.5% growth. The airline said changes to its network aimed at weeding out unprofitable flights were paying off and demand appeared to be strong next year.
“The company is encouraged by near-term revenue trends and forward bookings, including fourth quarter holiday travel, and now expects strong revenue trends and tactical initiative performance to continue into 2025,” the company said in a securities filing.
Southwest Airlines also said it would complete its first aircraft sale and leaseback in the first quarter.
American Airlines said unit revenue in the final three months of the year is expected to be up 1% from the same period in 2023, compared with the previous forecast of a 3% decline in unit revenue from the same period in 2023. American Airlines also raised its adjusted earnings per share forecast to 55 cents to 75 cents from 25 cents to 50 cents.
American Airlines also said Thursday that it has chosen Citibank has ditched Barclays as its sole credit card provider in a long-awaited deal.
one day ago, JetBlue Airways The company raised its revenue forecast for the current quarter and told employees it would further cut unprofitable routes and adjust its 2025 summer European routes later this week.