Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
American Airlines“The first-quarter earnings outlook on Thursday fell short of analysts’ estimates, sending its shares down more than 7% in afternoon trading.
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, a wider loss than analysts 4 cents were waiting, according to LSEG.
The airline said it expects unit costs, excluding fuel, to rise in the single-digit percentage points over the first quarter of 2024 driven by lower capacity, which it expects to fall as much as 2% over last year; a higher mix of smaller regional jets; and new employment agreements it ended last year.
The earnings outlook contrasts with more bleak forecasts from rivals united and Delta Earlier this month, although the full-year US earnings forecast of between $1.70 and $2.70 is in line with analysts’ estimates.
American has spent much of the last year working reverse the downfall of a business travel sales strategy that pushed for direct bookings instead of travel agencies. The American has since abandoned that failed strategy and last year said that the previous approach cost $1.5 billion in 2024 revenues.
However, he also sealed a new credit card deal 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, loyalty and co-brand credit card programs, fleet and operational reliability, and of the tremendous work of our team,” CEO Robert Isom said in a news release.
American said it expects revenues to increase between 3% and 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 how American did in the fourth quarter compared to Wall Street estimates compiled by LSEG:
- Earnings per share: 86 cents adjusted versus 64 cents
- Revenue: $13.66 billion versus $13.40 billion expected
America’s fourth-quarter profit rose to $590 million from $19 million on sales that rose 4.6% over the year to $13.66 billion. Domestic and international revenues increased, led by growth in trans-Pacific revenues.
Adjusted for one-time items, American earned 86 cents per share, more than analysts expected. The special items last year include the impact of labor contracts, a devaluation of some regional aircraft and adjustments related to some of its senior debt.
