American Airlines Predicts 20-40 Cent Loss Per Share in Q1 2025

American Airlines has forecasted an adjusted loss per share of 20 to 40 cents for the first quarter of 2025, a wider loss than the 4 cents analysts were expecting. This outlook led to a more than 5% drop in the company’s shares. The airline expects unit costs, excluding fuel, to rise by low-single digit percentage points over the first quarter of 2024 due to lower capacity, a higher mix of smaller, regional-jet flying, and new labor agreements. Despite this, American’s full-year earnings forecast of between $1.70 and $2.70 aligns with analysts’ estimates. The airline also anticipates revenue to increase by 3% to 5% in the first quarter and up to 7.5% for the full year compared to 2024. In the fourth quarter, American’s profit rose to $590 million from $19 million, with sales up 4.6% to $13.66 billion.

Source: www.cnbc.com