• American Airlines raised its adjusted earnings outlook for the second quarter.
• The carrier cited strong travel demand and lower fuel prices.

American Airlines raised its adjusted earnings outlook for the second quarter thanks to strong travel demand and lower fuel prices.

Adjusted per-share earnings will come in between $1.45 and $1.65, American estimated Wednesday, up from a previous forecast of $1.20 to $1.40 per share. The Fort Worth, Texas-based airline said it's now expecting unit revenues in the three months ending June 30 to come in 1% to 3% lower than the same period last year, an improvement from a prior forecast for a decline of as much as 4%.

American's shares added more than 1% on Wednesday trading while the S&P 500 fell.

The airline is scheduled to report results for the second quarter at the end of July.

Also on CNBC

• Memorial Day air travel tops 2019 levels as consumers shell out for trips
• Now Boarding: Why airlines are turning to bigger planes to beat congestion
• Consumers may be starting to fire up China's pandemic-battered economy

Subscribe to the CNBC YouTube Channel

Morning Squawk Newsletter