American Airlines has pulled its 2025 financial forecast due to growing consumer apprehension over an escalating trade war, mirroring its peers. The airline’s CEO, Robert Isom, stated that economic uncertainty has pressured demand and impacted the company’s first-quarter results and second-quarter outlook.
The move follows similar withdrawals by other major US airlines, including Southwest Airlines, Alaska Air, Delta Air, and Frontier. United Airlines recently gave two different forecasts, factoring in an economic recession into one of them.
Isom urged the elimination of aerospace-related tariffs, stating that aircraft already cost too much. The airline has no intention of absorbing tariff-related costs and does not expect its customers to bear them.
In the first quarter, American Airlines reported a total operating revenue of $12.55 billion, down marginally from a year earlier. The company’s shares have lost 46% of their value so far this year but were up 1.6% in morning trade.
The withdrawal of forecasts reflects growing uncertainty among airlines due to the US President’s fluctuating trade policies and fears of recession. As a result, consumers are becoming more cautious about non-essential spending, such as travel.
Source: https://www.reuters.com/business/american-airlines-pulls-2025-profit-forecast-trump-tariffs-cause-demand-2025-04-24