Oct 26 (Reuters) - American Airlines Group Inc reported a better-than-expected quarterly profit on Thursday, benefiting from higher demand for business and leisure travel.
Continue Reading Below
For the current fourth quarter, American said it expects revenue per available seat mile, a closely watched performance metric which compares sales to flight capacity, to rise between 2.5 percent and 4.5 percent.
The No. 1 U.S. airline's pre tax margin, excluding special items, is forecast between 4.5 percent and 6.5 percent for the period.
Earlier in October, smaller rival Delta Air Lines Inc also reported a better-than-expected third-quarter profit, as disruptions caused by hurricanes cost the airline less than some investors had feared.
American said hurricanes caused nearly 8,000 canceled flights and cost about $75 million in pre-tax earnings.
American Airlines said net income fell to $624 million or $1.28 per share in the quarter ended Sept. 30, from $737 million or $1.40 per share, a year earlier.
On an adjusted basis, American earned $1.42 per share.
Operating revenue rose to $10.88 billion from $10.59 billion.
Analysts on average had expected quarterly profit of $1.40 per share and revenue of $10.88 billion, according to Thomson Reuters I/B/E/S. (Reporting by Ankit Ajmera in Bengaluru; Editing by Sai Sachin Ravikumar, Bernard Orr)