American Airlines soars after strong read on demand across domestic, international and corporate travel

Apr. 21, 2022 7:24 AM ETAmerican Airlines Group Inc. (AAL)By: Clark Schultz, SA News Editor6 Comments

American Airlines A319 taking off at Charlotte Douglas International Airport

Laser1987/iStock Editorial via Getty Images

American Airlines Group (NASDAQ:AAL) jumped in early trading on Thursday after reporting Q1 results ahead of expectations and issuing a strong update on booking trends.

The airline company generated revenue of $8.9 billion in Q1 including passenger revenue of $7.8 billion and cargo revenue of $364 million. The airline also produced record sales for March, which also happened to be the first month since the beginning of the pandemic that total revenue came in ahead of 2019 levels for a month. Passenger revenue per available seat mile rose 56.0% to $0.1313 during the quarter and the load factor was 74.4%. For Q2, American (AAL) expects revenue to be 6% to 8% higher than Q2 of 2019.

American Airlines (AAL) said demand for domestic business travel steadily improved as offices have reopened and travel restrictions have been lifted. Revenue from small- to medium-size businesses and customers traveling for a mix of business and leisure also was said to remain very strong and is approaching a full recovery. Corporate bookings were noted to be the highest they have been since the start of the pandemic and demand for international travel was also pointed out to have picked up considerably as travel restrictions have been lifted in certain parts of the world.

Shares of American Airlines (AAL) rose 8.32% premarket to $21.10 vs. the 52-week trading range of $12.44 to $26.04.

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