American Airlines is the latest airline to cite economic uncertainty for its weaker demand, which was well noted throughout its first-quarter financial results. The airline posted a $473 million loss in Q1 and withdrew guidance for the rest of the year.
They join Delta, Southwest, and others in pulling guidance.
The trend among airlines for the past few months has been that domestic leisure travel is where most of the softness is coming from, and American Airlines is no different. CEO Robert Isom confirmed this in a CNBC interview this morning, saying that “…domestic leisure travel fell off considerably as we went into the February time frame,” while seeing “…strength from an international perspective.” He noted similar in this morning’s earnings call.
All in all, Q1 for American was “offset by a number of factors, including economic uncertainty that pressured domestic leisure demand and the tragic accident of American Eagle Flight 5342.”
Other results:
- $12.6 billion in revenue, down 0.2% (YoY)
- -$0.59 adjusted EPS, beats forecast
- Unit cost (excluding fuel) up 7.8% (YoY)
Other Takeaways
American and Citi’s continue to work on their exclusive partnership starting in 2026. AAdvantage enrollments were up 6% year over year in the first quarter, while spending on its co-branded cards were up 8% year over year. CEO Robert Isom also noted in this morning’s earnings call that AAdvantage members are responsible for 76% of premium cabin revenue.
The “…continued value of American’s loyalty program” is clear.
Isom also noted that the airline took an approximately $200 million hit from the tragic accident of American Eagle Flight 5342.
American also has a couple of things to look forward to. The airline announced last week that AAdvantage members will get access to free Wi-Fi sponsored by AT&T in January 2026. This is a small but important step for refocusing on the passenger experience.
The airline is expecting new deliveries of the A321XLR and Boeing 787-9 soon, which will be retrofitted with new and improved cabins in a premium heavy configuration.
All photos taken by the author.
