Shares in American Airlines (AAL:NASDAQ) have performed well year-to-date, rising 42% to $18.14 as investors welcome the recovery in demand for the travel sector.Holidaymakers are booking their summer and winter getaways despite the cost-of-living crisis and escalating costs for flights and accommodation.

It generated a first-quarter profit for the first time in four years and reiterated plans to strengthen its balance sheet, having reduced
debt by more than $850 million in the quarter. It is 60% of the way
to its goal of reducing debt by $15 billion by the end of 2025. It ended the quarter with $14.4 billion of liquidity, comprised of cash, short-term investments and undrawn capacity under various credit facilities.

The airline is due to report its second fiscal quarter earnings on 20 July and has recently made an upward adjustment to its earnings per share guidance. The airline has now projected its EPS in the range of $1.45 to $1.65, up from the previous forecast of $1.20 to $1.40. The improved outlook is down to lower fuel costs and higher customer demand.

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