American Airlines has withdrawn its financial forecast for 2025, reflecting concerns within the airline industry as companies face challenges in predicting travel demand due to external economic pressures.
The airline’s decision parallels those of other major carriers like Southwest Airlines and Alaska Air, which have also scrapped their profit outlooks in light of increasing market volatility.
Discretionary spending among consumers has become uncertain due to economic downturns and tariff pressures, impacting travel demand and airline revenue forecasts.
In light of trade tensions initiated by US President Donald Trump’s policies, airlines are facing heightened challenges that contribute to market instability.
American Airlines has reported a net loss of $473m for the first quarter, a decline from a year earlier, alongside a drop in operating revenue to $12.55bn.
The airline’s previous forecast of an adjusted profit per share of $1.70 to $2.70 has been abandoned, reflecting the grim outlook for the industry.
Labour costs from contracts signed the previous year add additional financial strain on American Airlines, compounding the effects of reduced travel demand.
