American Airlines Stock Plummets Following Weak 2025 Outlook

Despite exceeding Q4 earnings expectations, American Airlines' shares dropped over 8% after forecasting larger-than-expected losses for early 2025.

American Airlines reported Q4 2024 earnings of 86 cents per share, surpassing analysts' expectations of 64 cents, with revenue hitting a record $13.66 billion.
The airline projected a Q1 2025 adjusted loss of 20 to 40 cents per share, significantly wider than the 1 to 4 cents loss analysts anticipated.
Full-year 2025 adjusted earnings per share are forecasted between $1.70 and $2.70, with the midpoint falling below Wall Street estimates.
American's outlook contrasts with more optimistic forecasts from competitors Delta and United Airlines, which highlighted growth in premium products.
The company attributed its weaker forecast to lower capacity, higher unit costs, and past challenges with a business travel sales strategy, despite gains from co-branded credit card partnerships.