American Airlines forecasts second-quarter profit largely above estimates

(Reuters) -American Airlines forecast current-quarter profit largely above analysts' expectations on Thursday, amid a rebound in business travel and expectations of strong demand in the upcoming summer season.

Shares of the carrier were up 4% in premarket trading.

Major U.S. airlines are experiencing a resurgence in corporate reservations as large companies ramp up their work-related travel expenses - a customer segment that was largely absent from the travel surge after the pandemic.

The International Air Transport Association expects 4.7 billion people to travel in 2024, compared with 4.5 billion in 2019. In the United States, passenger traffic is estimated to reach an all-time high this year, according to trade group Airlines for America.

The company expects an adjusted profit of $1.15 per share to $1.45 per share for the quarter ending June 30. Analysts were expecting earnings of $1.18 per share, according to LSEG data.

Airline executives have also highlighted robust travel demand across both domestic and international routes in the summer.

Fort Worth, Texas-based American Airlines swung to a loss of $312 million, or 48 cents per share, for its first quarter, compared with a profit of $10 million, or 2 cents per share last year.

The airline's total operating revenue rose 3.1%, to $12.57 billion.

(Reporting by Shivansh Tiwary in Bengaluru; Editing by Pooja Desai)

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