Airline Stocks Surge as Southwest and American Boost Outlooks

Southwest Airlines and American Airlines have raised their fourth-quarter revenue forecasts due to strong demand and higher fares, leading to a rise in their stock prices. Southwest anticipates a unit revenue increase of 5.5% to 7%, while American expects unit revenue to be flat or up by 1%, revising its earnings estimate to 55-75 cents per share. Both airlines are making strategic adjustments, with Southwest completing a sale-leaseback of aircraft and American selecting Citi as its sole credit-card provider. JetBlue also raised its revenue forecast and plans to cut unprofitable routes.