A Boeing 737 passenger aircraft of American Airlines arrives from Austin at JFK International Airport in Recent York because the Manhattan skyline looms within the background on February 7, 2024.
Charly Triballeau | Afp | Getty Images
American Airlines said Monday that 80% of its revenue this 12 months will come from loyalty program members and passengers who buy costlier tickets, up from a 70% share in 2017.
American and other carriers have poured billions of dollars into recent cabins, lounges and onboard upgrades to cater to high-spending travelers. American’s rival, Delta Air Lines, has repeatedly said that growth in premium revenue, which it considers tickets for extra legroom seats and higher-end cabins, has turn out to be an even bigger share of its overall sales and is growing faster than ticket sales within the coach cabin.
American earlier Monday said that it was ordering 260 recent Boeing, Airbus and Embraer planes to revamp its fleet and that it could retrofit older Airbus planes to extend the dimensions of their first-class cabins.
American’s revenue forecast is an element of its first investor day in greater than six years. It considers “premium content” tickets that cost greater than the most cost effective offering. The Fort Value, Texas-based airline said it expects to grow pretax margins in the approaching years and chip away at its debt load.
The carrier declined to offer profit or revenue forecasts for the primary quarter or full 12 months. Analysts polled by LSEG, formerly referred to as Refinitiv, are projecting 2024 earnings per share of $2.56 and revenue of $54.97 billion.
American shares were down greater than 4% in afternoon trading.
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