American Airlines (NASDAQ:AAL) saw its stock price plummet by 5% in pre-market trading on Monday, as investors reacted to the company's recent fourth-quarter earnings report and guidance. The airline, one of the 'Big Four' carriers in the United States, has been facing challenges in the competitive travel industry.

According to the latest financial results, American Airlines reported revenues of $13.66 billion for the fourth quarter, representing a 4.6% increase year-over-year. While this figure surpassed analysts' expectations by 2%, the company's performance in other areas raised concerns among investors. Notably, American Airlines logged full-year earnings per share (EPS) guidance that fell short of analysts' expectations, indicating potential headwinds for the company's profitability in the coming year.

The pre-market sell-off reflects growing investor apprehension about the airline industry's recovery and American Airlines' ability to navigate ongoing challenges. With the stock down 44.4% since reporting its earnings, it appears that market sentiment towards the airline sector remains cautious. As the travel industry continues to evolve post-pandemic, American Airlines will need to address these concerns and demonstrate its ability to adapt to changing market conditions to regain investor confidence.