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Top U.S. airlines forecast better third-quarter profit margins, revenue

Published 10/11/2016, 08:39 AM
Updated 10/11/2016, 08:50 AM
© Reuters. Travelers line up at an American Airlines ticket counter at O'Hare Airport in Chicago

(Reuters) - American Airlines Group Inc (O:AAL) and United Continental Holdings Inc (N:UAL) on Tuesday forecast improved profit margins and unit revenue for the third quarter, as travelers spent more on last-minute trips in September than expected.

American, the world's largest airline, said it expects an adjusted pre-tax profit margin between 13 percent and 15 percent, compared with prior guidance between 12 percent and 14 percent. United, the third largest by passenger traffic, said its margin could be as high as 16 percent, versus prior guidance of up to 15.5 percent.

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