Investing.com -- American Airlines has said it expects to post a loss in its current quarter, breaking from a more upbeat stance taken by some of its rivals.
The carrier noted that, based on present demand trends, the current outlook for fuel prices and excluding the impact of special items, it estimates that it will report a first-quarter adjusted loss per diluted share of between $0.20 and $0.40.
For the 2025 fiscal year, the company guided for adjusted earnings of $1.70 to $2.70 per diluted share, versus estimates of $2.42, according to LSEG data cited by Reuters.
Shares in American Airlines (NASDAQ:AAL) slumped by more than 8% in US premarket trading on Thursday.
The update comes after peer United Airlines delivered a better-than-anticipated quarterly profit projection earlier this week thanks in part to solid travel activity. United and the broader US airline industry have also been boosted recently by a downturn in seats in the domestic market, which have helped to bolster pricing power.
However, along with weaker demand from corporate travelers following a sales strategy overhaul, American Airlines has been grappling with an uptick in jet fuel prices driven by recent sanctions on Russia and hopes for a rebound in top oil importer China.
Yet Texas-based American Airlines still logged operating revenue of $13.66 billion in the fourth quarter, representing a 4.6% rise from the year-ago period and above analysts' estimates of $13.43 billion, according to Bloomberg consensus expectations.
Net income also grew to $609 million on an adjusted basis, up from $192 million in the corresponding period last year. Wall Street had seen the figure at $471.3 million. Per-share, adjusted earnings came in at $0.86, higher than projections as well.
"We continue to run a reliable operation, and we are reengineering the business to build an even more efficient airline," said CEO Robert Isom in a statement.