American Airlines Q1 2025 Forecast Disappoints, Shares Drop Sharply
American Airlines' Q1 2025 earnings outlook falls short of analyst expectations, causing a notable decline in airline stocks including Delta Air Lines.
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Highlights
- American Airlines (AAL) released a cautious earnings forecast for Q1 2024, missing analyst estimates.
- Shares of American Airlines and competitor Delta Air Lines (DAL) declined following the announcement.
- Delta plans to introduce premium seating across its entire fleet this summer as a strategic move amid economic uncertainties.
Shares of American Airlines plunged after the company updated its Q1 2024 guidance, which fell below market expectations and negatively impacted airline stocks broadly.
In a recent regulatory filing, American Airlines projected earnings per share (EPS) between $0.01 and $0.05 for the quarter, improving slightly from a prior breakeven forecast but still trailing the $0.06 consensus estimate.
The carrier also anticipates total revenue per available seat mile (TRASM) growth of approximately 25.5%, aligning with the midpoint of its previous forecast range of 24% to 27%.
Delta Air Lines Earnings Preview
Delta Air Lines is scheduled to report its quarterly results a day after American's update. CEO Ed Bastian revealed plans to roll out premium seating across all aircraft starting this summer, targeting travelers willing to pay a premium for enhanced comfort amid potential economic headwinds.
American Airlines is expected to publish its official earnings report on April 20, 2024.
Following the guidance update on April 12, American Airlines shares dropped by 9%, while Delta's stock declined by 1.7%.
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