American Airlines Revises First Quarter Outlook

In a recent announcement, American Airlines Inc. has adjusted its first-quarter 2025 forecast, attributing the revision to weaker-than-anticipated revenue. This downturn is largely due to the aftermath of the Flight 5342 collision and a noticeable dip in domestic leisure travel, especially in March. The company now anticipates total revenue to remain roughly unchanged from the first quarter of 2024, a stark contrast to the previously projected growth of 3% to 5%.

Financial Impact and Industry Trends

Further compounding the issue, American Airlines has revised its expected adjusted loss per diluted share to between $0.60 and $0.80, up from the earlier estimate of $0.20 to $0.40. This adjustment reflects broader industry challenges, as other carriers like Delta Air Lines and Southwest Airlines have also tempered their expectations for the quarter. Delta cited reduced consumer and corporate confidence due to macroeconomic uncertainties, while Southwest Airlines has lowered its revenue growth forecast to a maximum of 4%, down from a previous estimate of up to 7%.