American Airlines On Thursday, he retracted the 2025 financial guidance and joined other airlines this year working on booking uncertain outlook for the US economy and weaker than expected leisure travel.
“We left the strong fourth quarter and saw decent business in January, and when we entered the February time slot, it really fell a lot in domestic leisure travel,” CEO Robert Isom told CNBC’s “Scoobox” on Thursday.
The Americans said a 0.7% increase in unit revenue for the first quarter was driven by international bookings and the strength of premium cabins, echoing other airlines. delta and Unitedsaid a more price-sensitive leisure customer is a customer who is keeping travelling down.
The airline cut its second-quarter revenues to 2% from last year to 1%, down from the expected 2.2% Wall Street analyst, and is expected to rise by 4% in the current quarter. Americans said the adjusted revenue per share is likely to come between 50 cents and $1, with analysts expecting 99 cents per share.
It said capacity would rise 2% to 4% in the second quarter of last year.
Here’s how the Americans performed in the first quarter compared to Wall Street estimates compiled by LSEG:
Loss per share: Expected loss on 59 cents adjusted vs. 65 cents loss: Expected loss on $12.55 billion vs. 12.6 billion
The Americans recorded a loss of $473 million in the first quarter, wider than the $312 million loss reported the previous year, with revenues of $12.55 billion, which has remained largely unchanged since last year. Adjusting for one-off items, American reported a loss of 59 cents per share.
Volume has been reduced by 0.8%.
The Americans said their efforts to restructure their corporate travel operations after advances in their failed business strategies were offset by domestic leisure demand and economic uncertainty that pressured the tragic accident of the US Eagle Flight 5342.
