Shares of American Airways Group Inc. (NASDAQ: AAL) fell 5% on Thursday. The inventory has dropped 32% year-to-date. The airline is scheduled to report its earnings outcomes for the third quarter of 2025 on Thursday, October 23, earlier than market open. Right here’s a have a look at what to anticipate from the earnings report:
Income
American Airways has guided for income within the third quarter of 2025 to be down 2% to up 1% year-over-year. Analysts are projecting income of $13.63 billion for the quarter, which suggests a slight dip from $13.65 billion reported in the identical interval a yr in the past. Within the second quarter of 2025, whole working income remained comparatively unchanged at $14.4 billion versus the prior yr.
Earnings
AAL has guided for adjusted loss per share to be $0.10-0.60 in Q3 2025. Analysts are forecasting a lack of $0.28 per share for the interval, which compares to adjusted earnings per share of $0.30 reported in Q3 2024. In Q2 2025, adjusted EPS declined 13% YoY to $0.95.
Factors to notice
American Airways continues to function in a dynamic surroundings. The corporate’s efficiency has been impacted by a drop in demand for journey inside the home market, which makes up nearly all of its income. In Q2, home unit income dropped round 6% YoY attributable to softness in the principle cabin.
The airline expects home unit income to see a YoY decline in Q3 but it surely additionally expects July to be the weakest, and efficiency to enhance sequentially every month within the quarter as trade capability progress slows and demand strengthens.
In the meantime, the corporate has been seeing energy in worldwide journey and premium cabin. Spending from high-income prospects remained resilient in Q2. This momentum might be anticipated to proceed and additional boosted by the initiatives the airline is taking to enhance prospects’ journey expertise. AAL continues to see progress in its AAdvantage loyalty program members, who generate greater yield and account for round 77% of premium income.
American Airways expects capability to be up 2-3% YoY in Q3. Non-fuel unit prices are anticipated to be up 2.5-4.5% YoY, pushed primarily by the collective bargaining agreements the corporate ratified over the previous two years.
