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American sees better unit costs and fuel expenses in Q3

American Airlines has updated its third quarter guidance, forecasting slightly better unit cost and fuel expenses than before.

Costs per available seat mile (CASM) excluding fuel and special items are expected to rise 2% to 4% during the quarter ending in September, the Fort Worth, Texas-based carrier says in an investor update today. This is up to a percentage point better than the 3% to 5% increase it forecast in July.

Fuel expenses are expected to be between $1.65 to $1.70 per gallon, an at least three cent savings over American’s previous $1.73 to $1.78 per gallon guidance.

American also tightened its pre-tax margin expectations to 17% to 18%, which is at the high end of its previous guidance.

System capacity increased 3% and system passenger unit revenue decreased 6% to 8% in the third quarter, unchanged from previous guidance.

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