American Airlines (NASDAQ:AAL) reported a smaller-than-expected loss for the first quarter of 2025 but missed on revenue and pulled its full-year guidance.
The airline posted an adjusted loss of $0.59 per share, outperforming analyst expectations of a $0.62 loss. Revenue totaled $12.6 billion, coming in just below the $12.68 billion forecast, and representing a modest 0.7% year-over-year increase.
Despite progress in narrowing losses, the company withdrew its full-year forecast, citing persistent economic uncertainty. For the second quarter, it expects adjusted earnings per share between $0.50 and $1.00—a wide range that straddles analyst estimates of $0.96.
International routes continued to perform well, lifting total unit revenue by 0.7% compared to a year ago. However, softness in domestic leisure demand, tied to broader economic concerns, remains a headwind.
On the financial front, American Airlines generated $1.7 billion in free cash flow and used part of it to reduce its debt by $1.2 billion, ending the quarter with $10.8 billion in available liquidity.
