American Airlines faces uncertainty and weaker bookings, expected lower revenue and earnings for 1Q 2025

From CNBC: 2025-04-24 07:33:00

American Airlines withdrew its 2025 financial guidance due to uncertain U.S. economy outlook and weaker leisure travel bookings. Second-quarter revenue is forecasted to be down 2% to up 1%, below analyst expectations, with capacity expected to rise up to 4%. Adjusted earnings likely between 50 cents and $1, lower than expected.

In the first quarter, American Airlines reported a $473 million loss, wider than the previous year, with revenue at $12.55 billion. Stronger unit revenue driven by international bookings and premium cabins. Efforts to rebuild corporate travel business making progress, offset by economic uncertainty and tragic American Eagle Flight 5342 accident.

CEO Robert Isom expressed confidence in navigating the current environment. American Airlines posted a loss for the first quarter, with revenue nearly unchanged from last year. The airline is adjusting its business strategy following a tragic accident and economic uncertainty impacting leisure demand. Stay tuned for updates.



Read more at CNBC:: American Airlines (AAL) 1Q 2025 earnings