American Airlines (NASDAQ:AAL) withdrew its 2025 financial guidance on Thursday, joining other carriers that are grappling with an uncertain outlook on the U.S. economy and weaker-than-expected leisure travel bookings this year.
American said that the 0.7% increase in unit revenue in the first quarter was driven by strength in international bookings and premium cabins, echoing other airlines like Delta (NYSE:DAL)and United (NASDAQ:UAL), which said more price-sensitive leisure customers have been the ones holding back on trips.
The airline forecast second-quarter revenue down as much as 2% from last year to up as much as 1%, below the 2.2% Wall Street analysts expected, with its capacity expected to rise as much as 4% in the current quarter. American said adjusted per-share earnings would likely come in between 50 cents and $1, while analysts expected 99 cents per share.
It said capacity will rise between 2% and 4% over last year in the second quarter.
American posted a $473 million loss for the first quarter, wider than the $312 million loss it posted a year earlier, with revenue of $12.55 billion, nearly unchanged from last year. Adjusting for one-time items, American reported 59 cents a share.
Shares in the carrier dipped four cents Thursday morning to $9.28.
