American Airlines sees 2nd-quarter unit revenue up 16.5 to 17.5 percent from a year ago
By APTuesday, June 15, 2010
American Airlines expects 2Q unit revenue to rise
NEW YORK — American Airlines expects second-quarter unit revenue to rise between 16.5 percent and 17.5 percent from a year earlier.
That’s lower than the forecast of other major carriers, CEO Gerard Arpey told an investors’ conference in New York on Tuesday.
“Unit revenue won’t outpace the competition in the current quarter as it has in previous quarters,” Arpey said. “But this is important progress as we work to regain the ground we lost in the Great Recession.”
The airline said in a Securities and Exchange Commission filing earlier Tuesday that revenue from cargo and other services will rise between 11.8 and 12.8 percent compared with the second-quarter of 2009.
Although Arpey says the economic outlook is still uncertain, he’s confident about the airline’s ability to navigate a bumpy recovery.
“Nobody knows yet what will happen with economy and fuel prices remaining volatile, but I am more encouraged about our company than I have been in a long time.”
Parent AMR Corp. expects to end the second quarter with a cash and short-term investment balance of approximately $5.5 billion.
AMR shares rose 32 cents, or 3.8 percent, to $8.77 in afternoon trading. Shares of most major carriers were higher on Tuesday with improving outlooks for the second quarter.
