American Airlines Withdraws Full-Year Guidance Amid Economic Uncertainty, Reports Narrower Q1 Losses

CEO Robert Isom highlighted that the airline’s actions over the past several years to refresh its fleet, manage costs, and strengthen its balance sheet position it well for the uncertainty the industry is facing.

American Airlines Group Inc. (AAL) reported narrower losses compared to Wall Street estimates on Thursday but withdrew its full-year guidance, stating that it intends to provide an update once the economic outlook becomes clearer.

However, for the second quarter (Q2), the company expects adjusted earnings per diluted share to be between $0.50 and $1.00, versus a Wall Street estimate of $1.01.

CEO Robert Isom highlighted that the airline’s actions over the past several years to refresh its fleet, manage costs, and strengthen its balance sheet position it well for the uncertainty the industry is facing.

For the first quarter (Q1), total operating revenue declined 0.2% year-over-year (YoY) to $12.55 billion, marginally lower than a Street estimate of $12.56 billion. The airline’s total unit revenue increased 0.7% YoY, driven by continued strength in international unit revenue and continued growth in premium and loyalty revenue.

The airline reported an earnings loss of $0.59 per share compared to an estimated loss of $0.67.

American Airlines stated that throughout the quarter, the company continued to restore revenue in indirect channels and remains on track to regain its revenue share from indirect channels to historical levels by year-end.

“These efforts were offset by a number of factors, including economic uncertainty that pressured domestic leisure demand and the tragic accident of American Eagle Flight 5342,” it added.

During the quarter, the airline generated free cash flow of $1.7 billion and reduced its total debt by $1.2 billion. This contributed to the total debt reduction of $16.6 billion from peak levels in 2021, the airline said.

American Airlines ended the first quarter with $10.8 billion in total available liquidity, comprising cash and short-term investments, as well as undrawn capacity under revolving credit and other facilities.

AAL shares have declined by over 45% in 2025 and by 33% in the past 12 months.

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