Shares of United Airlines and American Airlines are up as the carriers are seeing stronger pricing power and better revenue trends.
By midmorning Wednesday, shares of United Continental Holdings Inc. were up $3.26, or 4.2 percent, to $71.74; and American Airlines Group Inc. rose $1.43, or 2.8 percent, to $53.51.
American says revenue for every seat flown one mile in the fourth quarter will be up 5 percent to 6 percent from a year earlier. That’s two points better than previously forecast. The airline credits higher average prices and more last-minute U.S. bookings.
After the market closed Tuesday, United said the revenue per mile figure would match last year’s fourth quarter, an improvement over its previous forecast of a decline of up to 2 percent.