American Airlines’ Q1 Earnings Outlook Falls Short of Estimates, Shares Plummet
American Airlines’ first-quarter earnings outlook missed analysts’ estimates, sending its shares down nearly 9%. The carrier forecast an adjusted loss per share of 20 cents to 40 cents for the first three months of 2025, based on current demand trends and a fuel price forecast. This is wider than the 4 cents analysts were expecting.
The airline’s outlook contrasts with sunnier forecasts from rivals United and Delta, but its full-year earnings forecast of between $1.70 and $2.70 is in line with analysts’ estimates.
American’s unit costs, excluding fuel, are expected to rise in the low-single-digit percentage points over the first quarter of 2024, driven by lower capacity, a higher mix of smaller, regional jet flying, and new labor agreements.
The airline’s revenue is expected to be up between 3% and 5% in the first quarter compared with the same period in 2024, and up as much as 7.5% for the full year compared with 2024. In the fourth quarter, American’s profit rose to $590 million from $19 million on sales that were up 4.6% on the year to $13.66 billion. Adjusted for one-time items, the airline earned 86 cents per share, more than analysts expected.