“Shares of American Airlines fell 8% after the company released an earnings forecast that came in weaker than analysts’ expectations and those of rivals.”, — write: epravda.com.ua
Shares of American Airlines fell 8% after the company released an earnings forecast that came in weaker than analysts’ expectations and those of rivals. The Financial Times writes about it. The airline expects 2025 adjusted earnings of $1.70 to $2.70 per share, 9% below the average analyst forecast of $2.42. In addition, the company warned of a bigger loss in the first quarter than expected. This forecast is significantly inferior to the optimistic expectations of competitors Delta Air Lines and United Airlines. Delta reported strong growth in travel demand and forecast earnings to beat expectations, while United Airlines forecast earnings 39% higher than analysts’ estimates.Advertisement: American Airlines attributed the pessimistic forecast to air travel demand and high fuel prices. The company is still recovering from a botched decision that alienated corporate customers last year. The previous head of commercial, Vasu Raja, tried to direct customers to book through the company’s official website, which made sales difficult for the business. Despite the losses, American is recovering its position. CEO Robert Isom said: “We have reviewed and signed new contracts with corporate customers, which will allow us to regain lost market share.” In the fourth quarter of 2024, the company reported net income of $590 million on revenue of $13.66 billion, beating forecasts. However, it expects a loss of 20-40 cents per share for the first quarter of 2025.