Catenaa, Tuesday, March 11, 2025– American Airlines forecasted lower revenue and wider adjusted loss in the first quarter of 2025, with tariff pressures and weaker air travel demand.
The company said on Tuesday that it cuts its revenue growth expectation for the first three months of the year, now expecting revenue to be unchanged from the prior-year period.
Previously, the company guided for growth of between 3% to 5%.
Analysts expect revenue to rise to $13.02 billion, up from $12.57 billion in the prior-year first quarter, according to FactSet.
The airline attributed the weaker outlook to softness in the domestic leisure segment—primarily in March—and the lingering impact of Flight 5342.
The airline now forecasts an adjusted loss per share of $0.60 to $0.80, worse than its prior estimate of a loss of $0.20 to $0.40 per share.
The US air carrier’s stock was down 4% in premarket trading after the news. The airline’s shares have lost 25% of its shares in the last one month period.
The airline maintained its capacity expectations, measured in available seat miles, of flat to a 2% decline.
Costs, measured in cost per available seat mile excluding fuel and special items, were also left unchanged, and are still expected to be up high single digits.
