American Airlines falls: Projects higher-than-expected Q1 loss, cuts revenue guide

Investing.com -- Shares of American Airlines (NASDAQ: AAL) declined 4% premarket after the carrier lowered its first-quarter 2025 revenue outlook and projected a larger-than-expected loss, according to a company update released Tuesday.

American now expects total revenue to be flat compared to the first quarter of 2024, down from its prior forecast of a 3% to 5% increase.

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.

While American did not adjust its forecast for available seat miles (capacity) or unit costs excluding fuel (CASM-ex), which remain flat to down 2% and up high single digits, respectively, the revenue revision signals a more challenging demand environment than initially expected.

The update was provided ahead of American’s presentation at the 2025 J.P. Morgan Industrials Conference, where executives are expected to discuss financial and operational trends.

American Airlines' stock has faced pressure in recent months amid ongoing demand concerns.

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