The US's leading American Airlines have withdrawn its year-round guidance as it tackles economic uncertainty originating from its home country.
In common with peers, Americans announced their first quarter revenue on April 24, saying that leisure demand, especially within the country, is suffering amid economic uncertainty that premium international demand is being better maintained, while being driven by US President Donald Trump's policies. It also highlights the impact of PSA Airlines, which operates as American Eagle in Washington, DC in late January.
Airline revenues fell 0.2% annually for the January-March quarter 2025 to $12.6 billion, with net losses of $473 million, from $312 million the previous year. A small profit in the first quarter of 2024 led to an operating loss of $270 million. Passenger numbers during that period fell 33%, down 1% in capacity.
The first quarter's diluted loss of $0.59 per share was deeper than the $0.20 to $0.40 guided in late January.
Economic uncertainty has emerged as America continues to recover its indirect distribution channels, and last year announced it would cancel the direct distribution push that had negatively affected revenues. That misstep is one of the reasons why the careers slowed down the performance of fellow Delta and United Airlines in recent quarters.
However, America's CEO Robert Isom has insisted that his career is on track despite the new headwinds.
“The actions the US has taken over the past few years to update our fleet, manage costs and strengthen our balance sheet position due to the uncertainty facing our industry,” he said. “The resilience of the American Airlines team, combined with the investments they made to distinguish between networks, products and customer experiences, gives us great confidence in their ability to navigate the current environment and deliver strong long-term results.”
Still, Americans have retracted guidance for year-round profits per diluted share of between $1.70 and $2.70.
OneWorld Career says it intends to offer a full year update “as the economic outlook becomes clearer.”
