American Airlines (NASDAQ:AAL) news for Thursday concerning increasing demand for flights has AAL stock taking off.
According to a news release from American Airlines, the company plans to see domestic capacity in July surpass 55% of what it was during the same time of 2019. The company notes that international demand has been slower to recover at 20% capacity compared to July 2019, but it is increasing.
The American Airlines news release also includes data showing the increase in demand. For example, the company’s average daily passengers in April were 32,154. That number increased to 78,718 from May 1 to May 23. For the period between May 24 and May 29, the company saw 110,330 daily average passengers.
Vasu Raja, senior vice president of Network Strategy at American Airlines, said this about the news.
“We’re seeing a slow but steady rise in domestic demand. After a careful review of data, we’ve built a July schedule to match. Our July schedule includes the smallest year-over-year capacity reduction since March. We’ll continue to look for prudent opportunities to restore service so our customers can travel whenever and wherever they are ready.”
American Airlines also notes that it will continue to follow the Centers for Disease Control and Prevention (CDC) guidelines as its business ramps up. That includes at its Admirals Clubs, several of which are reopening June 22. More of these locations will be reopening, but will instead act as service centers.
AAL stock was up 40.8% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.