Shares of American Airlines Group Inc. (NASDAQ: AAL), the number one US airline, surged 3.2% to $ 53.25 in early pre-market trading on Wednesday. This came after the air carrier raised its second-quarter outlook for a key revenue metric, cited higher individual yields For the total revenue per available seat mile (TRASM). The airline is now expecting total revenue per available seat mile to rise by 5% to 6% for the quarter, compared to its previous forecast of an increase of just 3.5% to 5.5% . American Airlines average that the new passenger yields would've showed strength in the Domestic, Central / South American, and Caribbean region.
The company also raised its second-quarter outlook for quarterly pre-tax margin, excluding select items, to be between 13% and 14% from 12% and 14%. For the month of June, American said load factor declined to 84.7% from 84.9%, as capacity growth of 1.1% to 24.9 billion flights seat miles outpaced a 0.8% increase in traffic to 21.0 billion revenue domestic miles. Over the past year, American Airlines stock rose 10.5%.