Airlines Adjust Fourth-Quarter Forecasts Amid Strong Demand #

Southwest Airlines and American Airlines have revised their forecasts for the fourth quarter due to robust demand and increased fares, resulting in a rise in their share prices.

Southwest anticipates that its unit revenue will increase between 5.5% and 7% compared to last year. This adjustment marks an improvement from the previous projection, which capped the increase at 5.5%. The airline credits network changes, which focus on eliminating unprofitable flights, for these promising numbers. Southwest also notes that demand into the upcoming year looks promising and expects positive revenue trends and tactical initiative performance to extend into 2025.

In addition, Southwest plans to complete its first sale and leaseback transaction of aircraft in the first quarter.

Meanwhile, American Airlines has adjusted its unit revenue expectations for the last three months of the year, predicting a flat to 1% increase compared to the prior year’s period. Previously, American had anticipated a decline of up to 3%. The company also upgraded its adjusted earnings forecast to range between 55 cents and 75 cents per share, up from the initial estimate of 25 cents to 50 cents per share.

Furthermore, American has chosen Citi as its sole credit-card provider, replacing Barclays.

Separately, JetBlue Airways also enhanced its revenue forecast for the quarter. The airline plans to further trim unprofitable routes and intends to revise its European summer 2025 schedule.