American Airlines said passenger traffic rose 2.8 percent in June as it added 2.4 percent capacity to its network.
The Fort Worth-based carrier said planes were fuller in the busy summer travel month as its load factors were up 0.4 percentage points to 85.4 percent.
American reiterated to Wall Street analysts that it expects unit revenues to be down six to eight percent in the second quarter compared to the same period last year. It also expects its second quarter pretax margin, excluding special items, to be between 16 and 18 percent.
The company also lowered its system capacity forecast, saying it will increase capacity by one percent instead of two percent in 2015. Domestic capacity is forecast to be up one to two percent instead of the prior guidance of two to three percent.
“This should be well received by the market as the company looks to better align capacity with demand,” said Cowen and Company analyst Helane Becker in a note to investors on Friday morning.
Shares of American [ticker: AAL] were up almost 5 percent, trading around $41.55 in early morning trading.