American Airlines reported record second-quarter revenue of $16.7 billion, up 16.3% year-over-year, according to Skift. The carrier used higher fares to offset roughly half of a $2.2 billion increase in fuel costs, posting a $71 million profit.

Revenue growth was broad-based. Premium cabin revenue rose 13.4%, main cabin increased 8.8%, and domestic revenue climbed 10.6%. Managed corporate revenue surged 26%. International markets also performed well, with transatlantic up 8.9% and Pacific up 15.1%.

Despite strong demand, fuel costs rose to about $4.05 per gallon, prompting American to again lower its full-year adjusted earnings per share outlook. The new range is a loss of 65 cents to a profit of 65 cents.

CEO Robert Isom framed the fare increases as the industry ‘catching up’ after airfares lagged inflation. He echoed executives from Delta and United, who expect elevated fares to persist even if fuel prices ease, due to rising non-fuel costs like labor, maintenance, and airport fees.

For travelers, this means higher airfares are likely here to stay, even as airlines enjoy record revenues. The strategy of offsetting fuel costs with higher fares has helped American remain profitable, but ongoing cost pressures keep the profit outlook uncertain.