American airlines reported a smaller-than-expected loss for the third quarter, and its outlook for the rest of the year beat Wall Street forecasts, sending the stock higher.
American expects to earn between 45 cents and 75 cents per share in the fourth quarter, above the 31 cents per share expected by analysts. That brought American’s full-year profit forecast to between 65 cents and 95 cents per share, well above Wall Street’s forecast of 43 cents per share. The carrier expects its fourth-quarter capacity to increase between 3% and 5% compared to the same period last year.
Once a slam dunk quarter, airlines have had a harder time making money this summer than in previous years. Schools are reopening earlier than before, and some travelers are choosing to take larger trips later in the year, when the weather is cooler and there are fewer crowds in many popular destinations.
American posted a net loss of $114 million, or 17 cents per share on revenue of $13.69 billion. Revenue increased by 0.3% compared to last year. Excluding net special items of $3 million from the impact of taxes, the company reported an adjusted loss per share of 17 cents.
American’s third-quarter outlook in July disappointed investors, even as other carriers also cut their profit outlooks for the year after demand plummeted in early 2025 as customers weighed on a series of on-again, off-again fares and economic uncertainty.
An oversupply of domestic flights this year has prompted carriers to scale back their growth plans to avoid unprofitable flights.
Here’s American’s third-quarter performance compared to Wall Street estimates compiled by LSEG:
- Loss per share: 17 cents adjusted versus expected loss of 28 cents
- Income: $13.69 billion versus $13.63 billion expected