American Airlines (AAL) Q4 2024 Earnings

American AirlinesFirst-quarter earnings forecasts on Thursday fell short of analysts’ estimates, sending shares down roughly 10%.

The carrier forecast an adjusted loss of 20 cents to 40 cents per share for the first three months of 2025, based on current demand trends and fuel price forecasts, a bigger loss than analysts expected of 4 cents, according to LSEG.

The airline said it expects unit costs, excluding fuel, to rise in the first quarter of 2024, driven by lower capacity, down to 2% from last year; a greater mix of smaller regional aircraft; and new employment agreements it ended last year.

The earnings outlook contrasts with the sunny outlook of rivals united and delta Earlier this month, even American’s full-year earnings forecast was between $1.70 and $2.70, according to analyst estimates.

Americans spent much of the last year vice versa a business travel sales strategy backfired. However, he also stamped a new credit card offer with his partner Citi. Compensation from its deals with Citi and Barclays rose 17% through 2023 to $6.1 billion last year, American said.

“Looking ahead this year, American remains well-positioned because of the strength of our network, loyalty and co-branded credit card programs, fleet and operational reliability, and the incredible work of our team,” said CEO Robert Isom. a news

American said it expects revenue to rise between 3% and 5% in the first quarter compared to the same period in 2024 and to rise 7.5% for the full year compared to 2024.

Here’s how American performed in the fourth quarter compared to LSEG’s Wall Street estimates:

• Earnings per share: 86 cents adjusted vs 64 cents
• Income: $13.66 billion vs expected $13.40 billion

American’s fourth-quarter profit rose to $590 million on a 4.6% year-over-year increase in sales from $19 million to $13.66 billion. Domestic and international revenues increased, driven by increased Pacific revenues.