American Airlines (AAL) Q4 2024 Earnings

American Airlines‘ Thursday’s first-quarter earnings forecast fell short of analysts’ estimates, sending shares down more than 5%.

The carrier forecast an adjusted loss of 20 cents to 40 cents per share for the first three months of 2025, based on current demand trends and a forecast for fuel prices, a wider loss than the 4 cents expected by analysts, according to LSEG.

The airline said it expects unit costs, excluding fuel, to increase by a low single-digit percentage point in the first quarter of 2024 due to lower capacity, down 2% from last year; a higher mix of smaller, regional jet flights; and new employment contracts concluded last year.

The earnings forecast contrasts with the sunnier forecasts of competitors United and Delta Earlier this month, American’s full-year earnings forecast of between $1.70 and $2.70 was in line with analysts’ estimates.

The American spent most of the last year working reverse The result of a business-travel sales strategy that drives direct bookings instead of travel agencies. America has since abandoned that failed strategy and said last year it would take the previous approach It cost 1.5 billion dollars Coming in 2024.

However, it is also sealed a new credit card agreement with his partner Citi. American said compensation from existing deals with Citi and Barclays rose 17% last year to $6.1 billion from 2023.

“As we look forward to this year, America remains well positioned thanks to the strength of our network, loyalty and co-branded credit card programs, fleet and operational reliability, and the great work of our team,” said CEO Robert Isom. news release.

American said it expects first-quarter revenue to rise 3% to 5% compared to the same period in 2024 and 7.5% for the full year compared to 2024.

Here’s how Americans fared in the fourth quarter compared to Wall Street estimates compiled by LSEG:

• Earnings per share: Adjusted to 86 cents vs. 64 cents
• Income: $13.66 billion vs. $13.40 billion expected

America’s fourth-quarter profit rose to $590 million on sales of $19 million, up 4.6% year-over-year to $13.66 billion. Both domestic and international revenue increased as Trans-Pacific revenue increased.