American Airlines is warning of a possible loss in its third quarter of 2025, despite reporting record revenue for its second quarter. The forecast suggests that cracks may be forming in the consumer travel boom, which has lifted other airlines’ profits.
The airline’s shares fell 7% before Thursday’s market open, reflecting investor concerns about its guidance. American reported a record $14.4 billion in revenue and a GAAP net profit of $599 million in its second quarter.
However, management’s cautious tone suggests that the company is anticipating macroeconomic weakness and reduced demand. CEO Robert Isom emphasized ongoing strength in the airline’s loyalty program and operational improvements, but the guidance raises questions about the sustainability of the consumer travel boom.
American’s outlook differs from its peers, including Delta Air Lines and United Airlines, which have reinstated full-year guidance and expressed confidence in their earnings prospects. The airline’s exposure to volatile weather at its hubs in Texas and differences in its debt and cost structure may be contributing to its pessimism.
The uncertainty surrounding American’s forecast adds a layer of complexity to the recovery narrative across the industry, reminding investors that macroeconomic conditions remain cloudy.
Source: https://qz.com/american-airlines-forecasts-q3-loss-despite-record-revenue