American Airlines Adjusts 2025 Profit Forecast Amid Demand Concerns

Fort Worth, Texas — American Airlines has revised its financial outlook for 2025, projecting an adjusted per-share loss of up to 20 cents or earnings of as much as 80 cents. This updated forecast is significantly lower than earlier predictions of earnings between $1.70 and $2.70.

The announcement came Thursday as the airline grapples with fluctuating tariffs and a weaker-than-expected travel demand. CEO Robert Isom noted that the carrier’s challenges in meeting market expectations have prompted this cautious outlook.

In its earnings release, American Airlines indicated that it anticipates the low-end of its forecast only if unforeseen macroeconomic weaknesses arise. Conversely, the high-end forecast hinges on improvements in the domestic travel market.

Regarding performance, American expects an adjusted per-share loss of 10 to 60 cents for the third quarter. Analysts polled by LSEG had anticipated a 7-cent loss. For the three months ending June 30, American reported revenue climbed 0.4% to $14.39 billion, exceeding expectations. However, net income dropped 16.5% to $599 million, translating to 91 cents a share.

After accounting for one-time items, American recorded adjusted earnings of $628 million, or 95 cents a share, outperforming analyst forecasts. The airline is navigating a tumultuous financial landscape while trying to maintain profitability in an unpredictable economy.

This story has been updated to correct the earnings per share for the second quarter.