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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 AirlinesThursday’s first-quarter earnings forecast missed analysts’ estimates, sending shares down about 10%.
The carrier forecast an adjusted loss per share of between 20 cents and 40 cents for the first three months of 2025, based on current demand trends and the outlook for fuel prices, according to LSEG, which was higher than analysts’ expectations of 4 cents.
The airline said it expects unit costs, excluding fuel, to rise by a low-single-digit percentage point in the first quarter of 2024 due to lower capacity, which it forecasts will be down 2% from last year; a higher mix of smaller, regional jet flights; and new ones employment contracts it was completed last year.
The earnings forecast contrasts with the sunnier forecasts of competitors United and Delta earlier this month, though American’s full-year profit forecast of $1.70 to $2.70 was in line with analysts’ estimates.
The American spent a significant part of last year reverse gear the sales strategy for business travel backfired. However, it is also sealed a new credit card deal with your partner City. Compensation from existing deals with Citi and Barclays rose 17% from 2023 to $6.1 billion last year, American reported.
“Looking ahead to this year, American remains well positioned thanks to our strong network, loyalty and co-branded credit card programs, fleet and operational reliability, and the tremendous work of our team,” CEO Robert Isom said in a news release.
American said it expects revenue to grow 3-5% in the first quarter from the same period in 2024 and 7.5% for the full year from 2024.
Here’s how Americans fared in the fourth quarter compared to Wall Street estimates compiled by LSEG:
- Earnings per share: 86 cents adjusted vs. 64 cents
- income: $13.66 billion versus the expected $13.40 billion
American’s fourth-quarter profit rose to $590 million from $19 million on sales that rose 4.6% year over year to $13.66 billion. Both domestic and international revenues rose, led by a surge in trans-Pacific revenue.
