American Airlines, which is dealing with an unpredictable economic outlook, withdrew its 2025 financial guidance on Thursday. CEO Robert Isom mentioned that they had a solid fourth quarter, an okay January, and then domestic leisure travel just plummeted in February. The company reported a 0.7% increase in unit revenue in the first quarter due to strong international bookings and premium cabins.
The airline is expecting second-quarter revenue to drop by up to 2% compared to last year, which is not really good news. Analysts were expecting revenue to go up by 2.2%, so this is a bit of a disappointment. American Airlines also said that their capacity will increase by 4% in the current quarter, which is quite a jump.
In the first quarter, American Airlines didn’t do as well as Wall Street had hoped. They reported a loss of 59 cents per share, while analysts were expecting a loss of 65 cents. Their revenue was $12.55 billion, which is a bit below the expected $12.6 billion. On top of that, the company posted a $473 million loss, wider than the $312 million loss from last year.
Despite trying to rebuild their corporate travel business after a failed strategy, American Airlines is still facing economic uncertainty. They mentioned that the tragic accident of American Eagle Flight 5342 also had an impact on their operations. It’s a tough time for the airline, no doubt about it.
