American Airlines narrows Q4 revenue fall forecast

American Airlines Group said on Tuesday its Q4 revenue fall would be narrower than it previously expected, sending the No. 1 US carrier's shares up about 2%. The company said it now expects revenue for the quarter to be down about 17% versus pre-pandemic levels, compared with its prior forecast of an about 20% fall. A rise in COVID-19 infections of the Omicron variant has forced airlines to cancel flights as pilots and cabin crew fell sick and needed to quarantine. read more Mass cancellations over the Christmas and New Year holiday period and higher incentives given to employees had an impact on carriers, with American Airlines forecasting higher Q4 costs. The company expects cost per available seat mile excluding items - the measure in the industry showing what it costs to fly one seat one mile - to be up between 13% and 14% versus 2019, compared with its previous guidance of a rise of between 8% and 10%. A writedown of excess spare parts inventory also increased costs, the airline added.<br/>