An American Airlines Boeing 787-8 Dreamliner takes off from Los Angeles International Airport en route to Tokyo on September 19, 2024 in Los Angeles, California.
Kevin Carter | Getty Images
American airlinesThe first-quarter earnings outlook on Thursday came in below analysts’ estimates, sending shares down more than 5%.
The carrier projects an adjusted loss per share of 20 to 40 cents for the first three months of 2025, based on current demand trends and fuel price forecasts, a wider loss than the 4 cents expected by analysts , according to LSEG.
The airline said it expects unit costs, excluding fuel, to increase by a low single-digit percentage during the first quarter of 2024, driven by lower capacity, which is expected to decline up to 2% compared to last year; a higher mix of smaller regional jets; and new employment agreements it was finalized last year.
Earnings outlook contrasts with competitors’ sunnier forecasts United And Delta earlier this month, although American’s full-year profit forecast of between $1.70 and $2.70 was in line with analysts’ estimates.
The American spent much of the last year working for reverse the fallout from a corporate travel sales strategy that encouraged direct bookings rather than travel agencies. The Americans have since abandoned this failed strategy and said last year that their previous approach it cost him $1.5 billion in 2024 turnover.
However, he also sealed a new credit card offer with his partner Citi. Compensation from its existing deals with Citi and Barclays rose 17% from 2023 to $6.1 billion last year, American said.
“As we look ahead to this year, American remains well positioned due to the strength of our network, our loyalty and co-branded credit card programs, the reliability of our fleet and operations, and the work great team,” CEO Robert Isom said in a press release.
American said it expects its revenue to increase 3% to 5% in the first quarter compared to the same period in 2024 and up to 7.5% for the full year compared to 2024.
Here’s American’s fourth-quarter performance compared to Wall Street estimates compiled by LSEG:
- Earnings per share: 86 cents adjusted versus 64 cents
- Income: $13.66 billion versus $13.40 billion expected
American’s fourth-quarter profit rose to $590 million, up from $19 million on sales up 4.6 percent on the year to $13.66 billion. Domestic and international revenues have increased, driven by an increase in transpacific revenues.
