American Airlines Projects $2.8 Billion Q4 Fuel Cost Increase

American Airlines expects fourth-quarter fuel expense to rise $2.8 billion from a year earlier as it forecasts an adjusted per-share loss and budgets for sharply higher fuel prices. The airline’s average fuel-price assumption for the quarter is about $4.70 per gallon, based on the forward curve as of Oct. 19. The projected price is nearly double the year-earlier level. It is a forecast for the quarter, not a realized average. American projects fourth-quarter revenue growth of 19.5% to 22.5% year over year. Available seat miles, a measure of capacity, are expected to increase 5.5% to 6.5%.

Source: TokenPost