A Delta Airlines and American Airlines plane are seen at Ronald Reagan Washington National Airport in Arlington, Virginia, on July 1, 2023.
Stefani Reynolds | AFP | Getty Images
Airlines are cutting their first-quarter profit and sales estimates, warning that a weaker economic backdrop is weighing on travel demand.
Ahead of a JPMorgan industry conference, American Airlines on Tuesday said it expects to lose between 60 cents a share to 80 cents a share in the first three months of the year, a wider loss than the 20 cents to 40 cents a share it previously forecast. It said revenue would likely be flat on the year compared with a January estimate of a rise of as much as 5%.
American said in a securities filing that “the revenue environment has been weaker than initially expected due to the impact of Flight 5342 and softness in the domestic leisure segment, primarily in March,” referring to the deadly collision of one of its regional jets…
