Shares of American Airlines Group Inc. AAL ascended 2.0% in premarket trading Wednesday, after the air carrier raised its second-quarter outlook for adjusted profit and for a key revenue metric, citing “continued strength in the demand environment.” The company raised its guidance ranges for adjusted earnings per share to $1.45 to $1.65 from $1.20 to $1.40. The new range is above the current FactSet consensus of $1.29. The company also raised its guidance ranges for adjusted operating margin to 12.5% to 14.5% from 11.0% to 13.0% and for total revenue per available seat mile (TRASM) to a year-over-year decline of 1.0% to 3.0% from a decline of 2.0% to 4.0%, while lowering its average fuel price per gallon to $2.55 to $2.65 from $2.65 to $2.75 and keeping its capacity growth outlook unchanged at +3.5% to +5.5%. American affirmed its full-year guidance range for adjusted EPS of $2.50 to $3.50, and for capacity to rise 5.0% to 8.0%. The carrier said it doesn’t plan to provide a further update to guidance until it reports second-quarter results, which is expected in the second-half of July. The stock has rallied 14.9% year to date through Tuesday, while the U.S. Global Jets exchange-traded fund JETS has tacked on 7.3% and the S&P 500 SPX has advanced 9.5%.
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