American Airlines‘ first-quarter earnings outlook on Thursday fell short of analysts’ estimates, sending its shares down nearly 9%.
The carrier forecast an adjusted loss per share of 20 cents to 40 cents for the first three months of 2025 based on current demand trends and a fuel price forecast, a wider loss than the 4 cents analysts were expecting, according to LSEG.
The airline said it expects unit costs, excluding fuel, to rise in the low-single-digit percentage points over the first quarter of 2024 driven by lower capacity, which it expects to fall as much as 2% over last year; a higher mix of smaller, regional jet flying; and new labor agreements it finalized last year.
The earnings outlook contrasts with sunnier forecasts from rivals United and Delta earlier this month, though American’s full-year earnings forecast of between $1.70 and $2.70 is in line with analysts’ estimates.
American spent much of the last year working to
