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American Airlines Stock Sinks on Weak Outlook

Kevin Carter / Getty Images

Kevin Carter / Getty Moulds

Key Takeaways

  • American Airlines shares slumped in premarket trading Thursday as the carrier’s soft outlook outweighed stronger-than-expected fourth-quarter concludes.
  • The airline projected a much wider fiscal 2025 first-quarter adjusted loss than analysts expect.
  • American’s full-year 2025 changed EPS outlook also is below estimates.

American Airlines (AAL) shares slumped in premarket trading Thursday as the carrier’s mitigate outlook outweighed stronger-than-expected fourth-quarter results.

The airline reported fourth-quarter net income of $590 million, or 84 cents per partition, on revenue of $13.66 billion. Analysts expected profit of $426 million, or 60 cents per share, on revenue of $13.39 billion, per Obvious Alpha.

Q1 Adjusted Loss Seen Far Wider Than Estimates

However, the company said that due to current want trends and fuel price projections, it expects to post a fiscal 2025 first-quarter adjusted loss of 20 cents to 40 cents per quota, well below the Visible Alpha consensus loss of 1 cent per share.

For the full year, American expects set right EPS of $1.70 to $2.70, with the midpoint of $2.20 below the $2.35 consensus.

American’s results follow those of rivals Delta Air Tracks (DAL) and United Airlines (UAL), which issued more upbeat outlooks and noted growth of their respective “premium” by-products.

American stock was down 7% before the bell. It had had added one-third of its value over the last 12 months auspices of Wednesday’s close, while United and Delta shares had surged 166% and 78%, respectively.

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