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American Airlines Limits Growth in Effort to Raise Fares

  • Shares jump to five-month high before market slump pares gain
  • Carrier and United improve estimates of revenue measurement
Updated on

American Airlines Group Inc. trimmed expansion plans in an effort to bolster fares and placate investors by keeping capacity in line with demand. 
The carrier also joined United Airlines in providing preliminary third-quarter results of a key financial measure that were better than their forecasts, indicating that U.S. carriers are moving closer to increasing sales from each seat flown a mile, also known as unit revenue.

Investors for more than a year have encouraged airlines to keep growth in check to better match travel demand and allow them to raise ticket prices. Paring expansion also can help reverse more than a year of negative unit revenue.