What to expect when American Airlines (AAL) reports Q1 2025 earnings results | AlphaStreet

Shares of American Airlines Group (NASDAQ: AAL) stayed crimson on Thursday. The inventory has dropped 48% over the previous three months. The airline is slated to report its earnings results for the primary quarter of 2025 on Thursday, April 24, earlier than market open. Right here’s a have a look at what to expect from the earnings report:

Income

In an investor replace final month, American Airlines revised its outlook for the primary quarter of 2025 due to a difficult working atmosphere. The corporate now expects its revenues for the primary quarter to be flat in contrast to the identical interval a yr in the past. Its earlier expectation was for year-over-year income development of 3-5%.

Analysts are forecasting revenues of $12.56 billion for Q1 2025, which means a slight dip from $12.57 billion reported in Q1 2024. In This fall 2024, revenues elevated almost 5% year-over-year to $13.7 billion.

Earnings

AAL now expects adjusted loss per share for Q1 2025 to vary between $0.60-0.80 versus its earlier forecast of $0.20-0.40. Analysts are estimating a lack of $0.67 per share for the quarter, which compares to a lack of $0.34 per share reported within the year-ago interval. In This fall 2024, the corporate delivered adjusted earnings per share of $0.86.

Factors to be aware

The airline business is dealing with a troublesome working atmosphere with rising macroeconomic uncertainty and decrease demand for journey. American Airlines has additionally been impacted as wildfires, aviation incidents and softness in home leisure journey led to decrease revenues. Tariff-related uncertainties have additionally sparked widespread issues basically.

AAL continues to concentrate on bettering its buyer expertise and enhancing its premium merchandise. In This fall, premium income elevated round 8% YoY, and its AAdvantage loyalty program members accounted for 75% of premium cabin income. The corporate can be strengthening its community via airline partnerships.

The corporate’s outlook for capability and CASM-ex, which is value per out there seat mile, excluding gasoline and particular objects, stays unchanged. AAL expects capability for Q1 2025 to be flat to down 2% YoY whereas CASM-ex is predicted to be up high-single-digits.