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(Bloomberg) — American Airlines Group Inc. withdrew its full-year earnings outlook, joining a growing number of companies that say unease about the economy is making it difficult to forecast how the year will play out.
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The carrier said in a filing Thursday along with its first-quarter financial results that it plans to “provide a full-year update as the economic outlook becomes clearer.” In January, the company had projected adjusted earnings per share of $1.70 to $2.70 for the full year on a revenue gain of 4.5% to 7.5%.
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American’s action echoes those of Delta Air Lines Inc. and the parent of Frontier Airlines, which also pulled 2025 guidance as President Donald Trump’s trade war saps demand for travel. Waning confidence among consumers and businesses have “flat-lined” revenue growth, Delta said earlier this month. United Airlines Holdings Inc. took the unusual step last week of offering dual earnings forecasts, one for a stable environment and a reduced one based on a recession.
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American shares were little changed before the start of regular trading in New York. The stock had tumbled 47% this year through Wednesday, more than five times the decline in the S&P 500.
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Economic worries, government job cuts and questions surrounding border policies also have helped erode domestic demand and travel into the US from Canada and Europe, carriers have said in recent weeks. American also warned in March that a deadly collision involving one of its planes and a military helicopter near Washington amid a spate of other aviation incidents was weighing on demand.
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Airlines aren’t alone in pulling guidance due to uncertainty about the economic outlook. Comerica Inc. and UnitedHealth Group Inc. are among other major companies to reduce full-year guidance.
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American said it expects second-quarter adjusted profit of 50 cents to $1 a share, with the midpoint well below the 96 cents expected by analysts. Revenue will be down 2% to up 1% year over year, compared with Wall Street estimates for 2% growth.
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The Fort Worth, Texas-based company reported an adjusted loss of 59 cents per share in the first quarter, compared to Wall Street estimates for a deficit of 69 cents. It said the better-than-expected performance in the first three months was due to continued strength in international and premium travel.
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Southwest Airlines Co. reined in its full-year growth forecast on Wednesday as both it and Alaska Air Group Inc. posted first-quarter losses.
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