American Airlines (AAL) shares slumped in premarket trading Thursday as the carrier's soft outlook outweighed stronger-than-expected fourth-quarter results.
The airline reported fourth-quarter net income of $590 million, or 84 cents per share, on revenue of $13.66 billion. Analysts expected profit of $426 million, or 60 cents per share, on revenue of $13.39 billion, per Visible Alpha.
However, the company said that due to current demand trends and fuel price projections, it expects to post a fiscal 2025 first-quarter adjusted loss of 20 cents to 40 cents per share, well below the Visible Alpha consensus loss of 1 cent per share.
For the full year, American expects adjusted EPS of $1.70 to $2.70, with the midpoint of $2.20 below the $2.35 consensus.
American's results follow those of rivals Delta Air Lines (DAL) and United Airlines (UAL), which issued more upbeat outlooks and noted growth of their respective "premium" products.
American stock was down 7% before the bell. It had had added one-third of its value over the last 12 months through Wednesday's close, while United and Delta shares had surged 166% and 78%, respectively.
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