Revenue
Analysts are forecasting revenues of $12.56 billion for Q1 2025, which implies a slight dip from $12.57 billion reported in Q1 2024. In Q4 2024, revenues increased nearly 5% year-over-year to $13.7 billion.
Earnings
AAL now expects adjusted loss per share for Q1 2025 to range between $0.60-0.80 versus its earlier forecast of $0.20-0.40. Analysts are estimating a loss of $0.67 per share for the quarter, which compares to a loss of $0.34 per share reported in the year-ago period. In Q4 2024, the company delivered adjusted earnings per share of $0.86.
Points to note
The airline industry is facing a difficult operating environment with rising macroeconomic uncertainty and lower demand for travel. American Airlines has also been impacted as wildfires, aviation incidents and softness in domestic leisure travel led to lower revenues. Tariff-related uncertainties have also sparked widespread concerns in general.
AAL continues to focus on improving its customer experience and enhancing its premium products. In Q4, premium revenue increased around 8% YoY, and its AAdvantage loyalty program members accounted for 75% of premium cabin revenue. The company is also strengthening its network through airline partnerships.
The company’s outlook for capacity and CASM-ex, which is cost per available seat mile, excluding fuel and special items, remains unchanged. AAL expects capacity for Q1 2025 to be flat to down 2% YoY while CASM-ex is expected to be up high-single-digits.