american airlinesThe company’s first-quarter profit outlook released Thursday was lower than analysts expected, and the company’s stock price fell nearly 9%.
LSEG said the company expects adjusted loss per share for the first three months of 2025 to be between 20 cents and 40 cents, based on current demand trends and fuel price forecasts, compared with analysts’ expectations. The loss is said to have widened from the previous 4 cents.
The company said unit costs, excluding fuel, are expected to rise by low single digits compared to the first quarter of 2024 due to reduced transport capacity, and are expected to decline by up to 2% year over year. There is. There will be more flights of small regional jets. And a new collective bargaining agreement was finally concluded last year.
Earnings outlook contrasts with positive outlook from competitors united and delta That said, American Airlines’ full-year earnings forecast is between $1.70 and $2.70, which is in line with analyst expectations.
American Airlines spent much of last year reversing the impact of its travel sales strategy, which promoted direct bookings rather than travel agents. American Airlines has since abandoned that failed strategy, announcing last year that the traditional approach would reduce revenue by $1.5 billion in 2024.
However, the company also signed new credit card agreements with partners. city. American Airlines said compensation from existing contracts with Citi and Barclays will increase 17% from 2023 to $6.1 billion last year.
“As we head into this year, American Airlines continues to build on the strength of our network, our loyalty and co-branded credit card programs, the reliability of our fleet and operations, and the hard work of our team,” said CEO Robert Isom. We are in a favorable position.” News release.
American Airlines said it expects first-quarter revenue to increase 3% to 5% compared to the same period in 2024 and up to 7.5% for the full year compared to 2024.
Here’s how American Airlines’ fourth-quarter results compared to Wall Street’s expectations compiled by LSEG:
Earnings per share: Adjusted 86 cents vs. 64 cents Earnings: $13.66 billion vs. $13.4 billion expected
American Airlines’ fourth-quarter profit rose from $19 million to $590 million on revenue of $13.66 billion, up 4.6% year over year. Both domestic and international revenues increased, driven by a surge in trans-Pacific revenues.
American Airlines’ earnings, adjusted for one-time items, were 86 cents per share, beating analysts’ expectations. Special items last year included the impact of labor contracts, writedowns on certain regional aircraft, and adjustments related to certain senior debt.
