Sales outlooks are raised by Southwest and American, resulting in a jump in shares.

• Expectations for better-than-expected results in the fourth quarter are driving share prices upwards, according to American and Southwest.
• Southwest also said it expects to seal a sale-leaseback deal early next year.

On Thursday, carriers raised their fourth-quarter forecasts due to strong demand and higher fares, resulting in an increase in their stock prices.

The airline expects its fourth-quarter unit revenue to increase between 5.5% and 7% from the previous year, surpassing its earlier forecast of a maximum increase of 5.5%. The network changes implemented by the airline to eliminate unprofitable flights are showing positive results, and demand for the upcoming year appears stable.

The company anticipates continued revenue growth and successful tactical initiatives through 2025, based on recent revenue trends and upcoming holiday travel bookings.

In the first quarter, Southwest will also finalize its first sale-leaseback of aircraft.

American Airlines anticipates that its unit revenue in the final three months of the year will be equal to or up to 1% higher than the same period in 2023, compared to an earlier projection of a 3% decrease from the previous year. Additionally, the airline increased its adjusted earnings estimate to a range of 55 cents to 75 cents per share, from an earlier range of 25 cents to 50 cents.

On Thursday, American announced that it has chosen as its exclusive credit card provider, ending its partnership with Barclays, in a highly anticipated agreement.

Earlier, the company raised its revenue forecast for the quarter and informed employees that it would make changes to its unprofitable routes and adjustments to its summer 2025 Europe schedule later this week.