American Airlines Lifts Margin Outlook- Update

(RTTNews) - American Airlines Group Inc (AAL) Wednesday lifted its margin outlook for the second quarter and reiterated capacity expectations for the full year.

American Airlines, based in Fort Worth, Texas, now expects second-quarter margin to be in the range of 12 percent to 13 percent, from prior range of 10 percent to 12 percent.

The airline continues to expect full-year capacity growth of about 3 percent.

Following the announcement, shares of the company gained 3.5 percent in morning trade on the Nasdaq.

American Airline Group said it would incur charges of up to $600 million in the second quarter related to fuel hedging and bankruptcy reorganization.

The company also came out with its performance metric for June, with its total traffic in the month rising 1 percent to 19.9 billion revenue passenger miles from a year ago.

Capacity for June climbed 3.2 percent to 23.4 billion available seat miles, and passenger load factor slid 1.9 points to 85 percent, the company said.

The company expects second-quarter consolidated passenger revenue per available seat mile to be up about 5.5 percent to 6.5 percent compared with a year ago.

AAL is trading at $41.68, up $1.42 or 3.53%, on a volume of 13 million shares.