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Shares of American Airlines fell nearly 11% in premarket trading as the airline set a tougher profit outlook than its peers due to mismanagement of fuel costs and corporate travellers.
The Fort Worth, Texas-based company expects adjusted earnings to be between $1.70 and $2.70 per share this year, with the midpoint of that range about 9% below Wall Street’s estimate of $2.42 per share. % below.
The guidance contrasted with positive outlooks for rivals Delta Air Lines and United Airlines. Delta Air Lines is expected to earn more than $7.35 per share in 2025 based on consumer appetite for travel, while United Airlines expects adjusted earnings of $11.50 to $13.50 per share.
American Airlines maintained its outlook on travel demand and fuel costs. The airline is also still recovering from last year’s missteps that alienated corporate travelers and caused some to flee to other airlines.
This is a developing story
