American and Southwest Airlines Boost Year-End Forecasts, Driving Stock Surge

Strong travel demand and higher fares lead to improved revenue projections for both carriers, lifting airline stocks across the board.

American Airlines and Southwest Airlines raised their fourth-quarter revenue forecasts, citing strong holiday travel demand and higher ticket prices.
American Airlines now expects unit revenue to be flat or up 1% compared to 2023, an improvement from its prior estimate of a decline of up to 3%.
Southwest Airlines projects revenue per available seat mile to increase by 5.5% to 7%, up from its previous forecast of up to 5.5%.
Both airlines have implemented strategic adjustments, including cutting less profitable routes and reducing capacity, to boost profitability.
The announcements sent airline stocks soaring, with American shares up 16% and Southwest shares up 4%, while peers like United and Delta also saw gains.