Shares of American Airlines Group Inc. shot up 4.6% in premarket trading Tuesday, after the air carrier joined a number of its peers in raising its first-quarter revenue outlook, and said that would “more than offset” rising fuel and other expenses. The company now expects revenue to be down 17% from the same period in 2019, compared with previous guidance of down 20% to 22%, while cutting its capacity estimate to down 10% to 12% from down 8% to 10%. The company now expects fuel prices per gallon of between $2.73 and $2.78, and raised its guidance for total cost per available seat mile (CASM) excluding fuel to be up 11% to 13% from up 8% to 10%. “In recent weeks, the price of crude oil has risen significantly and as a result the Company has experienced an increase in the price of jet fuel,” the company said in a statement. Delta Air Lines Inc. , Southwest Airlines Co. and JetBlue Airways Corp. were among other air carriers who have raised their revenue outlooks Tuesday, but noted rising fuel costs. American’s stock has tumbled 20.7% year to date while the U.S. Global Jets ETF has dropped 13.2% and the S&P 500 has lost 12.4%.
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