American Airlines posted a smaller-than-expected loss for the third quarter, and its outlook for the remaining of the yr got here in ahead of Wall Street forecasts, sending the stock higher.
American expects to earn between 45 cents and 75 cents per share within the fourth quarter, above the 31 per share cents analysts expected. That brought American’s full-year earnings guidance to between 65 cents and 95 cents per share, well above the projected 43 cents per share Wall Street forecast. The carrier expects its fourth-quarter capability to grow between 3% and 5% over the identical period last yr.
Once a slam dunk quarter, airlines have found it harder to generate profits in the summertime than in years past. Schools reopen sooner than they used to and a few travelers opt to take larger trips later within the yr, when the weather is cooler and there are fewer crowds at many popular destinations.
American posted a net lack of $114 million, or 17 cents a share on revenue of $13.69 billion. Revenue was up 0.3% from last yr. Excluding net special items of $3 million following the effect of taxes, the corporate had an adjusted loss per share of 17 cents.
American’s third-quarter outlook in July had disillusioned investors, though other carriers had also cut their profit outlooks for the yr after demand dropped in early 2025 as customers weighed a slew of on-again, off-again tariffs and economic uncertainty.
An oversupply of domestic flights this yr prompted carriers to trim their growth plans to avoid unprofitable flying.
Here is how American performed within the third quarter compared with Wall Street estimates compiled by LSEG:
- Loss per share:Â 17 cents adjusted vs. a lack of 28 cents expected
- Revenue:Â $13.69 billion vs. $13.63 billion expected
