United, American Airlines earnings: Demand is in focus after Delta raises the bar

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American Airlines and United Airlines have a tough act to follow this week, and Wall Street hopes they will be as optimistic on air-travel demand as Delta.

American Airlines Group Inc. and United Airlines Holdings Inc. are scheduled to report second-quarter earnings this week — United after the bell on Wednesday and American before the bell on Thursday.

Delta forecast demand for air travel to continue to outstrip capacity in the second half of the year, including into the post-summer shoulder season. Rohlena expects the post-summer boost cited by Delta to hold for United and American as a result of “consumer strength despite potential macroeconomic headwinds.” Overall, the two airlines are likely to post “solid” quarterly results, he said.Earnings: Analysts polled by FactSet expect American to report adjusted earnings of $1.58 a share for the quarter, compared with 76 cents a share in the second quarter of 2022.

Stock movement: Shares of American have gained 46% year to date, while shares of United are up 26% so far this year. Related: Joby Aviation’s stock takes off after maker of electric air taxis gets one step closer to commercial flights

 

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