American Airlines Group (NASDAQ:AAL) shares rose about 3.5% on Thursday after the airline issued a more upbeat forecast for the first quarter, indicating that its adjusted loss per share is now expected to come in at the lower end of its previously projected range.
The Fort Worth, Texas-based carrier said it now anticipates an adjusted loss per share between $0.10 and $0.50 for the quarter, with actual results likely to fall near the bottom of that range. This outlook compares favorably with the Bloomberg consensus forecast for a $0.44 loss per share.
American Airlines also lifted its revenue expectations for the first quarter, now forecasting total revenue growth of more than 10%, compared with earlier guidance of roughly 7% to 10%. The company said available seat miles are expected to increase by around 3% to 4% during the period.
In addition, the airline revised its fuel cost assumptions, estimating that jet fuel will average about $2.75 per gallon in the first quarter.