MW American Airlines pulls its 2025 outlook. The economic outlook is too uncertain.

By Tomi Kilgore

Air carrier's stock drops, as quarterly results bested forecasts but the profit view for the current quarter was on the downbeat side

Shares of American Airlines Group Inc. were descending Thursday, after the air carrier provided a downbeat profit outlook for the current quarter and said there was too much economic uncertainty to maintain its full-year outlook.

Meanwhile, the results for the first quarter that ended on March 31 beat Wall Street expectations amid continued strength in its international business, spending on premium flight options and from loyalty-program members.

The stock $(AAL)$ shed 1.3% in premarket trading. That put it on track for a second straight weekly loss, and the ninth weekly loss in the past 11 weeks.

For the second quarter, the company expects adjusted earnings per share, which excludes nonrecurring items, of 50 cents to $1.00. The midpoint of that range is well below the current average analyst estimate compiled by FactSet of 96 cents.

For 2025, American had previously said it expected adjusted EPS of $1.70 to $2.70, but not anymore.

"The company is withdrawing its full-year guidance at this time," the company said in a statement. "American intends to provide a full-year update as the economic outlook becomes clearer."

For the first quarter, American reported a net loss that widened 51.6% from a year ago to $473 million. On an adjusted basis, the per-share loss widened to 59 cents from 34 cents, but still beat the FactSet consensus for a loss of 70 cents per share.

Revenue slipped 0.2% to $12.55 billion, just above the FactSet consensus of $12.54 billion, as passenger revenue declined 0.6% to $11.39 billion but cargo and other revenue grew a combined 4.3% to $1.16 billion.

Passenger load factor fell to 80.6% from 81.5%, missing Wall Street expectations of 81.7%, as traffic declined 1.9% while seat supply was down 0.9%.

American's stock has tumbled 46.5% in 2025 through Wednesday, while the U.S. Global Jets ETF JETS has dropped 24.2% and the S&P 500 index SPX has lost 8.6%.

-Tomi Kilgore

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April 24, 2025 08:04 ET (12:04 GMT)

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