American Airlines Group (NASDAQ: AAL) shares remained red on Thursday. The stock price has fallen 48% over the past three months. The airline plans to report revenue results before the market opens for the first quarter 2025 on Thursday, April 24th. This looks at what you expect from the revenue report.
Revenue
In an investor update last month, American Airlines revised its first quarter 2025 outlook due to a challenging operating environment. The company currently expects first quarter revenue to remain flat compared to the same period a year ago. Previous expectations were revenue growth rates of 3-5% year-on-year.
Analysts forecast revenue of $12.56 billion for the first quarter of 2025. This means a slight drop from the $12.57 billion reported in the first quarter of 2024.
Revenue
AAL is currently expected to have an adjusted loss per share in the first quarter of 2025 in the range of $0.60-0.80. Analysts estimate a quarterly loss of $0.67 per share. This is comparable to the loss of $0.34 per share reported in the same period last year. In the fourth quarter of 2024, the company delivered adjusted revenue per share by $0.86.
Things to note
The aviation industry faces a challenging operating environment with increasing macroeconomic uncertainty and declining travel demand. American Airlines is affected by the softness of wildfires, aviation accidents and domestic leisure travel to reduce revenues. Tariff-related uncertainty has generally sparked widespread concern.
AAL continues to focus on improving customer experiences and strengthening premium products. In the fourth quarter, premium revenues rose 8% year-on-year, with its AADVantage Loyalty Program members accounting for 75% of premium cabin revenue. The company is also strengthening its network through airline partnerships.
The outlook for Capisome and Casm-Ex, which is the cost per seat mile available, except for fuel and special items, remains unchanged. AAL expects to fall by 2% until capacity flattens out in Q1 2025, while Casm-Ex is expected to rise in high digits.
