American and Southwest chase travelers with deeper pockets

Zoom in: Fort Worth-based American Airlines reported third-quarter revenue of $16.3 billion, a 19.3% increase from last year.

• American had an adjusted net loss of $182 million, noting a fuel bill that was nearly 70% higher.
• Dallas-based Southwest, which dropped its free checked bags and open seating policies in January, welcomed more passengers than expected in the third quarter even as fares rose 26.9% to an average of $232.
• Southwest cut its profit forecasts for the fourth quarter, citing rising fuel costs.

The big picture: American CEO Robert Isom said the fuel price spike "has just been a catalyst to allow us to realize that there is value" in the strong demand from customers willing to pay more.

• American said in August it would add premium seats and restore ‌seat-back entertainment screens on some jets.
• Southwest is offering new lounges and credit card perks, high-speed connectivity across its fleet and new international routes.
• "Things that are important to all customers — but certainly important to our business customers — will continue to come online at a very rapid pace in 2027," Southwest CEO Robert Jordan said on Thursday's earnings call.