American Airlines reported a smaller-than-expected loss for the third quarter and raised its outlook for the rest of the year, exceeding Wall Street forecasts. The airline expects to earn between 45-75 cents per share in the fourth quarter, well above analysts’ expectations of 31 cents per share. American’s full-year earnings guidance is between 65-95 cents per share, significantly higher than the projected 43 cents per share. The carrier anticipates a 3-5% increase in fourth-quarter capacity compared to last year.

Despite tough summer conditions, American Airlines posted a net loss of $114 million, or 17 cents per share on revenue of $13.69 billion. Revenue was up 0.3% from the previous year. Excluding net special items, the adjusted loss per share was also 17 cents. The third-quarter outlook in July had disappointed investors, as demand dropped due to tariffs and economic uncertainty, prompting American and other carriers to adjust profit forecasts.

An oversupply of domestic flights this year led airlines to cut growth plans to avoid unprofitable flying. The performance of American Airlines in the third quarter exceeded Wall Street estimates, with a loss per share of 17 cents adjusted compared to an expected loss of 28 cents, and revenue of $13.69 billion versus $13.63 billion expected.

Read more at CNBC: American Airlines (AAL) 3Q 2025 earnings