American Airlines’ shares rose nearly 11% Thursday in premarket trades after it said that its Q2 profits are possible as travel restrictions in post-pandemic times ease.

The airline reported a $2.32 adjusted loss per stock for Q1, compared with a loss of $4.32 per share in the previous year and an expected loss of $2.42 per share. In the quarter, operating revenue reached $8.90billion. That’s an improvement of the $4.01billion reported in the prior year and just below analyst expectations at $8.82billion.

In passenger revenue, the company earned $7.82 billion. This is an increase from the $3.18 billion reported in the prior year. It also exceeded the estimated $7.79 billion. There were 59.53 trillion available seats, which is 58% more than what was expected. This compares to consensus estimates of only 59.46 billion.

In the third quarter revenue passenger miles amounted to 44.29 billion, which was 97% higher YoY than the expected 46.87 trillion. American Airlines posted a load factor at 74.4% in its quarter, an improvement from 59.5% last year but still below the consensus estimate of 79.6%.

According to the airline, Q2 revenues will be 6-8 % higher than Q2 2019, according to its forecasts. The airline noted an increase in domestic travel demand and a sharp recovery of international travel.

American Airlines expects that Q2 capacity will be 92%-94% higher than it was Q2 2019, according to American Airlines.

“The demand environment is very strong, and as a result, we expect to be profitable in the second quarter based on our current fuel price assumptions.”

Goldman Sachs (NYSE:) analyst Catherine O’Brien noted that Q2 guidance is “significantly better than our forecast into the print (GSe +2%) and investor expectations per our recent conversations (which were recently raised following strong June Q revenue guides from competitors over the last week).”

Cowen analyst Helane Becker added that results and strong outlook were fueled by “continued strong demand driving prices higher and lower capacity plans due to a lack of crew and higher fuel prices.”

Becker is focused on “minimum liquidity levels and confidence in the operations for the summer.”

By Senad Karaahmetovic