American Airlines sees revenue recovery but higher costs too

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This June 7, 2021, photo shows an American Airlines aircraft at Phoenix Sky Harbor International Airport in Phoenix. (AP Photo/Jenny Kane)

FORT WORTH, Texas (AP) — At American Airlines, revenue is higher than expected but so are costs. The airline said Tuesday that first-quarter revenue will be a tick better than Wall Street expected. That’s an indication that demand for travel has been strong and fares are rising. However, revenue is still expected to be 16% below pre-pandemic levels in 2019. And costs are rising faster than American expected just a month ago. The mixed outlook from American could provide a hint of what other airlines will say when they begin reporting financial results for the quarter, starting with Delta Air Lines on Wednesday.