(Reuters) -American Airlines raised its annual forecast for adjusted profit on Thursday, powered by strong demand for domestic and international travel despite fears of a looming economic slowdown.

Major airlines have been benefiting from an unprecedented surge in travel demand as consumers, faced with constrained budgets, cut expenditures on goods to spend on experiences.

Boosting profits, jet fuel costs in North America are down about 30% from a year ago, but there are signs flight fares might be cooling off.

The company said it expects an adjusted profit of $3.00 to $3.75 per share for 2023 compared with its prior outlook of $2.50 to $3.50 per share.

Peers United Airlines and Delta Air Lines have also raised their 2023 profit expectations after reporting bumper earnings in the quarter.

American Airlines' net income for the second quarter ended June 30 was $1.34 billion, or $1.88 per share, compared with $476 million, or $0.68 per share, a year earlier.

(Reporting by Shivansh Tiwary in Bengaluru; Editing by Arun Koyyur)