American Airlines reduces 2025 profit projections following a disappointing third-quarter forecast.
American Airlines planes on the tarmac at the Miami International Airport on Feb. 19, 2025, in Miami, Florida.
Joe Raedle | Getty Images
American Airlines’ third-quarter profit forecast did not meet expectations as the carrier revised its 2025 financial outlook downward compared to earlier predictions made at the start of the year.
On Thursday, American forecast a 2025 adjusted per-share loss of as much as 20 cents or earnings of up to 80 cents, a significant decrease from adjusted earnings estimates of between $1.70 to $2.70 issued in January. The airline, along with others in the industry, withdrew its 2025 financial forecast in April as it faced fluctuating tariffs and weaker-than-expected demand.
In its earnings release, the airline stated that it expects the low end of its forecast if “there were to be macro weaknesses that are not seen today,” and the high end if the domestic travel market continues to improve.
Here is how American performed in the second quarter compared with Wall Street estimates compiled by LSEG:
- Earnings per share: 95 cents adjusted vs. 78 cents
- Revenue: $14.39 billion vs. $14.3 billion expected
For the third quarter, American indicated it expects an adjusted per-share loss of 10 cents to 60 cents, while analysts polled by LSEG predicted a 7 cent loss.
In the three months ended June 30, American’s revenue rose 0.4% to $14.39 billion, exceeding expectations, while net income dropped 16.5% to $599 million, or 91 cents a share. Adjusting for one-time items, American reported earnings of $628 million, or 95 cents a share, which was significantly above analysts’ expectations.
Correction: This story has been updated to correct the earnings per share for the second quarter.
