US major American Airlines has withdrawn its full-year guidance as it grapples with economic uncertainties emanating from its home country.
In common with peers, American noted as it released its first-quarter earnings on 24 April that domestic leisure demand in particular has suffered amid that economic uncertainty, which has been driven by the policies of US President Donald Trump, while premium international demand is holding up better. It also highlights the impact of the PSA Airlines – operating as American Eagle – CRJ700 crash in Washington DC in late January.
The airline’s revenue was down by 0.2% year on year at $12.6 billion for the January-March 2025 quarter, while its net loss deepened to $473 million, from $312 million a year earlier. It swung to an operating loss of $270 million, from a small first-quarter profit of $7 million in 2024. Its passenger numbers for the period dropped 3.3% to 51 million on a 1% fall in capacity.
The $0.59 loss per diluted share in the first quarter was deeper than the $0.20 to $0.40 it guided for in late January.
Economic uncertainties have emerged as American continues to restore indirect distribution channels, having last year announced it was undoing a direct distribution push that had negatively impacted its revenues. That misstep is one reason why the carrier has lagged the performances of peers Delta Air Lines and United Airlines in recent quarters.
But American chief executive Robert Isom insists the carrier remains on track, despite new headwinds.
“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,” he states. “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.”
Still, American has withdrawn guidance for a full-year profit per diluted share of $1.70 to $2.70.
The Oneworld carrier says it intends to provide a full-year update “as the economic outlook becomes clearer”.
