American Airlines beat estimates on earnings per share and revenue last quarter, but shares fell after it reinstated its full-year guidance at a far lower rate than its January forecast.
Its revenue was a record US$14.39 billion, up 0.4% year-over-year and passing LSEG estimates of $14.3 billion. Diluted earnings per share were $0.91, declining from the $1.01 seen one year ago but above estimates of $0.78.
“American delivered record revenue in an evolving demand environment in the second quarter thanks to the hard work and dedication of our team,” said American Airlines CEO Robert Isom.
“We remain confident that the actions we have taken over the past several years to refresh our fleet, manage costs and strengthen our balance sheet position us well for the future.”
American Airlines’ net income was US$599 million, down 16.4% year-over-year. Operating income dropped by 18% to $1.14 billion.
Passenger revenue was US$13.12 billion, falling by 0.6%. Cargo revenue grew by 8.2% to $211 million, with Other revenue up 13% to $1.06 billion.
Operating expenses were US$13.26 billion, growing by 2.4% year-over-year. The increase was driven in large part by a 10.9% rise in salaries, wages, and benefits to $4.38 billion, though aircraft fuel expenses fell by 13% to $2.66 billion.
The company expects an adjusted loss per diluted share of US$0.10-0.60 next quarter, with full-year projections between a loss of $0.20 and earnings of $0.80. Its January forecast predicted full-year adjusted earnings per share of $1.70-2.70, though American Airlines withdrew its guidance in April as domestic travel demand fell.
Competitors Delta Air Lines and United Airlines have also both lowered their guidance from earlier in 2025, though Delta said travel demand showed signs of stabilising last quarter.
American Airlines’ (NASDAQ: AAL) share price closed at US$11.46, falling by 9.6% from its previous close at $12.68. Its market capitalisation is $7.56 billion.
