American Airlines withdrew its 2025 financial guidance on Thursday, joining other carriers which might be grappling with an uncertain outlook for the U.S. economy and weaker-than-expected leisure travel bookings this 12 months.
“We got here off a powerful fourth quarter, saw decent business in January and really domestic leisure travel fell off considerably as we went into the February timeframe,” CEO Robert Isom told CNBC’s “Squawk Box” on Thursday.
American said that the 0.7% increase in unit revenue in the primary quarter was driven by strength in international bookings and premium cabins, echoing other airlines like Delta and United, which said more price-sensitive leisure customers have been those holding back on trips.
The airline forecast second-quarter revenue down as much as 2% from last 12 months to up as much as 1%, below the two.2% Wall Street analysts expected, with its capability expected to rise as much as 4% in the present quarter. American said adjusted per-share earnings would likely are available between 50 cents and $1, while analysts expected 99 cents per share.
It said capability will rise between 2% and 4% over last 12 months within the second quarter.
Here is how American performed in the primary quarter compared with Wall Street estimates compiled by LSEG:
- Loss per share: 59 cents adjusted vs. an expected lack of 65 cents
- Revenue: $12.55 billion vs. $12.6 billion expected
American posted a $473 million loss for the primary quarter, wider than the $312 million loss it reported a 12 months earlier, with revenue of $12.55 billion, nearly unchanged from last 12 months. Adjusting for one-time items, American reported a loss per share of 59 cents.
Capability was down 0.8%.
American said its efforts to rebuild its corporate travel business after a failed business strategy are making progress but were offset by “economic uncertainty that pressured domestic leisure demand and the tragic accident of American Eagle Flight 5342,” 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 2 aircraft.
