By laksh5382 
American Airlines It reported a loss in the third quarter, but raised its profit forecast for the year as CEO Robert Isom said a change in the company’s sales strategy earlier this year was paying off.
The carrier said it expects earnings between 25 cents to 50 cents a share on an adjusted basis for the fourth quarter, higher than the 29 cents reported by analysts at LSEG. For the full year, the airline is expected to earn as much as an adjusted $1.60 per share, up from an earlier US forecast of $1.30 per share.
American in May fired Its chief commercial officer’s sales strategy, aimed at directly promoting bookings, backfired and most of its sales model was quickly withdrawn.
“We have taken aggressive actions to reset our sales and distribution strategy and re-engage the business travel community, which we believe will improve our revenue performance over time,” Isom said in an earnings release Thursday. ” “We have heard great feedback from travel agencies and corporate customers as we work to rebuild the foundation of our commercial strategy and make it easier for customers to do business with American.”
How American performed in the third quarter compared to Wall Street estimates compiled by LSEG:
- earnings per share: 30 cents versus 16 cents adjusted
- Income: $13.65 billion vs. $13.49 billion expected
American’s revenue for the three months ended Sept. 30 rose 1.2% to a record $13.65 billion, but had a net loss of $149 million, narrower than the $545 million loss recorded a year earlier. Unit revenue fell 2% in the quarter.
For the fourth quarter, American said its unit revenue is likely to decline between 1% and 3% compared with last year, while capacity will increase by 3% year over year.