American Airlines reported a dip in fourth-quarter profits Thursday due to higher costs as it projected stronger-than-expected 2018 profits because of strong demand. The US carrier reported fourth-quarter earnings of $258 million, down 10.9 percent from the year-ago period. Revenues were $10.6 billion, up 8.3 percent.
American, like other US carriers, has offered more differentiated seat options on planes such as "premium economy," which helped enable it to score higher fourth-quarter total revenue per available seat mile (TRASM), a closely-watched industry benchmark.
American also reported increased passenger yields in all regions and said cargo revenues rose compared with the year-ago period. The airline predicted more TRASM growth in the first quarter of 2018, citing "expected continued improvement in demand for both business and leisure travel."