American Airlines shares rise on carrier’s better second-quarter forecast

American Airlines shares rose after the carrier forecast better revenue and a narrower loss than previously estimated for Q2, the latest sign that airlines are recovering from the coronavirus pandemic’s toll on travel. The Fort Worth, Texas-based carrier said Tuesday that it expects to post a “slight” pretax profit for Q2. It said it will likely report results ranging from a net loss of $35m to a net profit of $25m for the three months ended June 30. Excluding net special items, it expects a net loss of up to $1.2b and an adjusted per-share loss of between $1.67 and $1.76. That compares with analysts estimates of $2.44 a share. “We are clearly moving in the right direction,” CEO Doug Parker and President Robert Isom said in a staff note. Air travel has bounced back sharply since the spring, when Covid-19 vaccines rolled out widely around the US and officials lifted restrictions that shuttered attractions from indoor dining to theme parks. American said it flew 44m passengers in Q2, an 82% increase from the first three months of 2021, though still below 2019 levels. Revenue for the quarter ended last month likely came in 37.5% below the same period of 2019, when it generated $11.96b, compared with an earlier estimate of a 40% drop. American said it expects its daily cash build rate will be about $1m a day, the first positive quarter since the pandemic started.<br/>