American Airways (AAL) 4Q 2024 earnings

American Airways‘ first-quarter earnings outlook on Thursday fell in need of analysts’ estimates, sending shares down greater than 5%.

The provider forecast an adjusted loss per share of 20 cents to 40 cents for the primary three months of 2025 based mostly on present demand tendencies and fuel-price forecast, a wider loss than the 4 cents analysts had been anticipating, in response to LSEG.

The airline mentioned it expects unit prices, excluding gas, to rise within the low-single digit share factors over the primary quarter of 2024 pushed by decrease capability, which it expects to fall as a lot as 2% over final yr; a better mixture of smaller, regional-jet flying; and new labor agreements it finalized final yr.

The earnings outlook contrasts with sunnier forecasts from rivals United and Delta earlier this month, although American’s full-year earnings forecast of between $1.70 and $2.70 is consistent with analysts’ estimates.

American spent a lot of the final yr working to reverse the fallout of a business-travel gross sales technique that pushed for direct bookings as a substitute of journey businesses. American has since deserted that failed technique and final yr mentioned that earlier method would price it $1.5 billion in 2024 income.

Nevertheless, it additionally sealed a new bank card deal with its accomplice Citi. Compensation from its present offers with Citi and Barclays rose 17% from 2023 to $6.1 billion final yr, American mentioned.

“As we sit up for this yr, American stays well-positioned due to the power of our community, loyalty and co-branded bank card applications, fleet and operational reliability, and the large work of our group,” CEO Robert Isom mentioned in a information launch.

American mentioned it expects income to be up between 3% to five% within the first quarter versus the identical interval in 2024 and up as a lot as 7.5% for the complete yr in contrast with 2024.

Right here is how American carried out within the fourth quarter in contrast with Wall Road estimates compiled by LSEG:

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

American’s fourth-quarter revenue rose to $590 million from $19 million on gross sales that had been up 4.6% on the yr to $13.66 billion. Each home and worldwide income rose, led by a surge in trans-Pacific income.