Shares of American Airlines Group Inc. surged 2.3% in premarket trade Wednesday, after the air carrier raised its second-quarter outlook for a key revenue metric, citing higher passenger yields. Total revenue per available seat mile (TRASM) is now expected to be up 5% to 6% from a year ago, compared with its previous guidance of 3.5% to 5.5% growth. Passenger yields showed particular strength in the domestic, Central/South American and Caribbean regions. The company raised its second-quarter outlook for per-tax margin, excluding special items, to be between 13% and 14% from between 12% and 14%. For the month of June, American said load factor declined to 84.7% from 84.9%, as capacity growth of 1.1% to 24.9 billion available seat miles outpaced a 0.8% increase in traffic to 21.0 billion revenue passenger miles. The stock had run up 10.5% year to date through Tuesday, while the NYSE Arca Airline Index had gained 6.6% and the S&P 500 had advanced 8.3%.
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