American Airlines Makes Big Decision
Earlier this year Delta Airlines and Southwest Airlines both decided against publishing their 2025 financial guidance citing economic uncertainty.
American Airlines is now following suit. On Thursday, April 24, the company announced its first quarter earnings revealing a $473 million loss - wider than the $312 million loss it posted in 2024, with revenue of $12.55 billion, up 0.7% from the first quarter in 2024.
The airline said it "continued to restore revenue in indirect channels and remains on track to restore its revenue share from indirect channels to historical levels exiting the year." While making progress, those efforts were offset by "economic uncertainty that pressured domestic leisure demand and the tragic accident of American Eagle Flight 5342," referring to the accident in January where an Army helicopter collided with an American jet that killed all 67 people within the two aircraft.
Following the financial announcement, the airline made the decision not to include full-year guidance for investors due to economic uncertainty.
"Based on present demand trends, the current fuel price forecast and excluding the impact of special items, the company expects its second-quarter 2025 adjusted earnings per diluted share to be between $0.50 and $1.00," American Airlines said in a statement. "The company is withdrawing its full-year guidance at this time. American intends to provide a full-year update as the economic outlook becomes clearer."
The airline announced it ended the first quarter with $10.8 billion of total available liquidity with an available borrowing capacity of "more than $10 billion in unencumbered assets and more than $13 billion in additional first-lien borrowings allowable by its existing financing arrangements."
“The actions American has taken over the past several years to refresh our fleet, manage costs and strengthen our balance sheet position us well for the uncertainty our industry is facing,” CEO Robert Isom said in a statement. “The resiliency of the American Airlines team, combined with the investments we have made to differentiate our network, product and customer experience, give us extreme confidence in our ability to navigate the current environment and deliver strong results for the long term.”
Related: Southwest Airlines Receives Good News After 'Mass Layoffs'