American again raises 4Q16 revenue guidance


Jun 28, 2003
Dallas, TX
From Jetnet:

For the third month in a row, we’re revising our guidance upward for two key financial measures. We now expect our pre-tax margin in the fourth quarter of 2016 to be 7 to 9 percent, up from our most recent prediction of 6 to 8 percent. And fourth-quarter total revenue per available seat mile is now expected to range from flat to up 2 percent compared to the same period a year earlier. Previously we had predicted it would be between down 1 percent and up 1 percent. The improvements are mostly due to improving yields – meaning the amount passengers pay to fly each mile. The improvement was partially offset by higher estimated fuel prices.
I wonder if this is sustainable though?
This has been an extended period where all US Airlines have been able to consistently hold on to profits.
Will the discipline hold?
And will customers continue to pay for the high margin 'add-ons' such as baggage, cancellation, flexible tickets?