American Airlines revenue measure signals pricing power recovery

American Airlines Group said a closely watched revenue measure rose more than expected in Q1, signalling that a long-awaited recovery in average fares has begun to take hold. Passenger revenue for each seat flown a mile rose as much as 4%, up from a previous forecast that unit revenue would increase as much as 3.5%. Pre-tax profit margin excluding one-time items also exceeded a previous forecast and the airline raised its planned growth in flights and seats. The results signalled progress for American in a 2-year struggle by US airlines to regain pricing power in the wake of a 2015 fare war. Delta said earlier this month that unit revenue fell in the quarter as the price of last-minute tickets recovered more slowly than expected, and United Continental said Monday that the measure would be flat compared with a year ago. <br/>