American Airlines Group Shares Up 3% on Raised Q3 Estimates

American Airlines (NASDAQ:AAL) reported a smaller-than-expected loss for the first quarter of 2025 but missed on revenue and pulled its full-year guidance.

The airline posted an adjusted loss of $0.59 per share, outperforming analyst expectations of a $0.62 loss. Revenue totaled $12.6 billion, coming in just below the $12.68 billion forecast, and representing a modest 0.7% year-over-year increase.

Despite progress in narrowing losses, the company withdrew its full-year forecast, citing persistent economic uncertainty. For the second quarter, it expects adjusted earnings per share between $0.50 and $1.00—a wide range that straddles analyst estimates of $0.96.

International routes continued to perform well, lifting total unit revenue by 0.7% compared to a year ago. However, softness in domestic leisure demand, tied to broader economic concerns, remains a headwind.

On the financial front, American Airlines generated $1.7 billion in free cash flow and used part of it to reduce its debt by $1.2 billion, ending the quarter with $10.8 billion in available liquidity.

American Airlines (NASDAQ:AAL) reported a smaller-than-expected loss for the first quarter of 2025 but missed on revenue and pulled its full-year guidance.

The airline posted an adjusted loss of $0.59 per share, outperforming analyst expectations of a $0.62 loss. Revenue totaled $12.6 billion, coming in just below the $12.68 billion forecast, and representing a modest 0.7% year-over-year increase.

Despite progress in narrowing losses, the company withdrew its full-year forecast, citing persistent economic uncertainty. For the second quarter, it expects adjusted earnings per share between $0.50 and $1.00—a wide range that straddles analyst estimates of $0.96.

International routes continued to perform well, lifting total unit revenue by 0.7% compared to a year ago. However, softness in domestic leisure demand, tied to broader economic concerns, remains a headwind.

On the financial front, American Airlines generated $1.7 billion in free cash flow and used part of it to reduce its debt by $1.2 billion, ending the quarter with $10.8 billion in available liquidity.

American Airlines Group Inc. (NASDAQ:AAL) is a major player in the airline industry, providing passenger and cargo services across the globe. The company competes with other giants like United Airlines and Delta Air Lines. Recently, AAL reported an earnings per share (EPS) of -$0.23 for October 24, 2024, missing the estimated EPS of $0.13. However, it surpassed revenue expectations with $13.65 billion, compared to the anticipated $13.47 billion.

Despite the EPS miss, American Airlines has released a promising fourth-quarter forecast, exceeding analysts' expectations. This positive outlook suggests a potential strong performance in the upcoming quarter, as highlighted by CNBC. Such forecasts can influence investor sentiment and potentially impact AAL's stock price positively.

The airline industry has shown mixed results this earnings season. United Airlines saw a stock surge after an earnings beat, while Delta Air Lines fell short of expectations. Investors are closely monitoring AAL's performance to see how it compares to its competitors, as noted by Barron's. The company's recent earnings report and future outlook are crucial in this context.

Analysts had projected AAL's third-quarter earnings at $0.13 per share, a significant 65.8% decline year-over-year. However, revenue expectations were slightly higher at $13.49 billion, a 0.1% increase from the previous year. Over the past month, the consensus EPS estimate was revised upward by 43.1%, indicating a positive reassessment by analysts, which often affects investor reactions and short-term stock price movements.

Currently, AAL's stock price is $12.83, reflecting a decrease of 1.0031% or $0.13. The stock has traded between $12.66 and $13.035 today, with a 52-week high of $16.15 and a low of $9.07. The company's market capitalization is approximately $8.43 billion, with a trading volume of 29.69 million shares.

American Airlines Group Inc. (NASDAQ:AAL) is a major player in the airline industry, providing passenger and cargo services across the globe. The company competes with other giants like United Airlines and Delta Air Lines. Recently, AAL reported an earnings per share (EPS) of -$0.23 for October 24, 2024, missing the estimated EPS of $0.13. However, it surpassed revenue expectations with $13.65 billion, compared to the anticipated $13.47 billion.

Despite the EPS miss, American Airlines has released a promising fourth-quarter forecast, exceeding analysts' expectations. This positive outlook suggests a potential strong performance in the upcoming quarter, as highlighted by CNBC. Such forecasts can influence investor sentiment and potentially impact AAL's stock price positively.

The airline industry has shown mixed results this earnings season. United Airlines saw a stock surge after an earnings beat, while Delta Air Lines fell short of expectations. Investors are closely monitoring AAL's performance to see how it compares to its competitors, as noted by Barron's. The company's recent earnings report and future outlook are crucial in this context.

Analysts had projected AAL's third-quarter earnings at $0.13 per share, a significant 65.8% decline year-over-year. However, revenue expectations were slightly higher at $13.49 billion, a 0.1% increase from the previous year. Over the past month, the consensus EPS estimate was revised upward by 43.1%, indicating a positive reassessment by analysts, which often affects investor reactions and short-term stock price movements.

Currently, AAL's stock price is $12.83, reflecting a decrease of 1.0031% or $0.13. The stock has traded between $12.66 and $13.035 today, with a 52-week high of $16.15 and a low of $9.07. The company's market capitalization is approximately $8.43 billion, with a trading volume of 29.69 million shares.

American Airlines (NASDAQ:AAL) slashed its full-year earnings guidance, overshadowing a minor beat in second-quarter earnings.

The airline reported adjusted earnings of $1.09 per share, slightly surpassing the analyst estimate of $1.07. However, quarterly revenue fell short of expectations, coming in at $14.3 billion compared to the Street estimate of $14.39 billion.

Despite achieving a 2% year-over-year increase in second-quarter revenue, setting a company record, American Airlines revised its full-year earnings guidance significantly downward. The new range is $0.70 to $1.30 per share, starkly below the Street estimate of $1.81 and the previous guidance of $2.25 to $3.25.

The midpoint of the revised guidance, $1.00, indicates a much more conservative outlook from the airline. For the third quarter of 2024, American Airlines expects earnings per share to be approximately breakeven, reflecting the ongoing effects of its earlier sales strategy. CEO Robert Isom attributed the second-quarter challenges to the company's prior sales and distribution strategies, as well as an imbalance in domestic supply and demand.

American Airlines (NASDAQ:AAL) slashed its full-year earnings guidance, overshadowing a minor beat in second-quarter earnings.

The airline reported adjusted earnings of $1.09 per share, slightly surpassing the analyst estimate of $1.07. However, quarterly revenue fell short of expectations, coming in at $14.3 billion compared to the Street estimate of $14.39 billion.

Despite achieving a 2% year-over-year increase in second-quarter revenue, setting a company record, American Airlines revised its full-year earnings guidance significantly downward. The new range is $0.70 to $1.30 per share, starkly below the Street estimate of $1.81 and the previous guidance of $2.25 to $3.25.

The midpoint of the revised guidance, $1.00, indicates a much more conservative outlook from the airline. For the third quarter of 2024, American Airlines expects earnings per share to be approximately breakeven, reflecting the ongoing effects of its earlier sales strategy. CEO Robert Isom attributed the second-quarter challenges to the company's prior sales and distribution strategies, as well as an imbalance in domestic supply and demand.

On Tuesday, American Airlines (NASDAQ:AAL) revised its second-quarter profit forecast downward due to weaker pricing power, causing its shares to drop about 7% in pre-market today.

The airline announced that Chief Commercial Officer Vasu Raja, who has been leading the new business strategy, will depart in June. American Airlines now anticipates second-quarter adjusted earnings between $1.00 and $1.15 per share, down from the previous forecast of $1.15 to $1.45 per share. The company also expects total revenue per available seat mile, an indicator of pricing power, to decline by 5% to 6% compared to a year ago, worse than the earlier projection of a 1% to 3% decrease.

Analysts have expressed doubts about American's strategy to differentiate itself from competitors. The airline has moved away from targeting corporate travel customers and is focusing on expanding its market share in smaller markets. Some analysts are skeptical that this approach will generate enough revenue to compete effectively with United and Delta Air Lines.

In the first quarter, American's business revenue increased by high-single digits year-over-year, compared to double-digit growth at Delta and United. Additionally, American's seat growth in the domestic market remains high, which analysts say is negatively impacting its pricing power.