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7mo ago

American Airlines Adjusts Profit Outlook Amid Corporate Client Recovery

The airline revises its annual profit forecast as it works to regain business travelers lost due to previous sales strategy errors.

ATLANTA, GEORGIA - OCTOBER 23: An American Airlines plane sits by a gate at the Hartsfield-Jackson Atlanta International Airport on October 23, 2024 in Atlanta, Georgia. The U.S. Department of Transportation fined American Airlines $50 million for numerous serious violations of the laws protecting airline passengers with disabilities. ( Photo by Joe Raedle/Getty Images)
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Overview

  • American Airlines increased its annual profit forecast, citing improved pricing power and efforts to recover corporate clients.
  • The airline previously lost corporate clients after reducing perks and discounts, but has since renegotiated contracts and reintroduced benefits.
  • Despite a positive earnings report, American Airlines' shares dipped due to a lower revenue per available seat mile forecast for the fourth quarter.
  • CEO Robert Isom emphasized a 'relentless' approach to reestablishing relationships with business customers and travel agencies.
  • American Airlines reported a third-quarter adjusted profit of 30 cents per share, surpassing expectations and achieving $13.65 billion in revenue.