American Airlines (AAL) 1Q 2025 earnings

American Airlines withdrew its 2025 financial guidance on Thursday, joining other carriers grappling with an uncertain outlook on the U.S. economy and weaker-than-expected leisure travel bookings this year.

The airline forecast second-quarter revenue down as much as 2% from last year to up as much as 1%, below the 2.2% Wall Street analysts expected, with its capacity expected to rise as much as 4% in the current quarter. American said adjusted per-share earnings would likely come in between 50 cents and $1, while analysts expected 99 cents per share.

It said capacity will rise between 2% and 4% over last year in the second quarter.

“The resiliency of the American Airlines team, combined with the investments we have made to differentiate our network, product and customer experience, give us extreme confidence in our ability to navigate the current environment and deliver strong results for the long term,” CEO Robert Isom said in an earnings release.

Here is how American performed in the first quarter compared with Wall Street estimates compiled by LSEG:

• Loss per share: 59 cents adjusted vs. an expected loss of 65 cents
• Revenue: $12.55 billion vs. $12.6 billion expected

American said that stronger unit revenue was driven by strength in international bookings and premium cabins.

American posted a $473 million loss for the first quarter, wider than the $312 million loss it posted a year earlier, with revenue of $12.55 billion, nearly unchanged from last year. Adjusting for one-time items American reported 59 cents a share.

Its efforts to rebuild its corporate travel business after a failed business strategy is making progress but were offset by “economic uncertainty that pressured domestic leisure demand and the tragic accident of American Eagle Flight 5342,” the airline said, referring to the January accident when an Army helicopter collided with an American regional jet that was landing in Washington D.C., killing all 67 people on the two aircraft.

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