American AirlinesThe company’s first-quarter earnings outlook on Thursday fell short of analysts’ expectations, sending shares down about 10%.

According to LSEG, based on current demand trends and fuel price forecasts, the airline expects an adjusted loss per share of 20 cents to 40 cents in the first three months of 2025, which is wider than the 4 cents expected by analysts.

The airline said it expects unit costs, excluding fuel, to rise by a low-single-digit percentage in the first quarter of 2024 due to lower capacity, which is expected to be down 2% from last year; a mix of flying by small regional jets; and new labor agreement It was completed last year.

Earnings outlook contrasts with upbeat forecasts from rivals united and delta Earlier this month, American Airlines set its full-year profit forecast at $1.70 to $2.70, in line with analysts’ expectations.

Americans spent much of last year in reverse Counterproductive business travel sales tactics. However, this also sealed new credit card transaction with its partners Citibank. American said compensation from existing deals with Citigroup and Barclays rose 17% last year from 2023 to $6.1 billion.

“As we look ahead to this year, American remains well-positioned because of the strength of our network, loyalty and co-branded credit card programs, fleet and operational reliability and the tremendous strength of our team,” said CEO Robert Isom. work.” press release.

American Airlines said it expects first-quarter 2024 revenue to increase 3% to 5% compared with the same period in 2024, and full-year revenue to increase 7.5% compared with 2024.

Here’s how American’s fourth-quarter performance compares to Wall Street forecasts compiled by the London Stock Exchange Group (LSEG):

• Earnings per share: Adjusted 86 cents vs. 64 cents
• income: $13.66 billion vs. $13.4 billion expected

American Airlines’ fourth-quarter profit increased from US$19 million to US$590 million, and sales increased 4.6% year-on-year to US$13.66 billion. Domestic and international revenue grew, led by a surge in trans-Pacific revenue.