American Airlines Earnings Preview: Revenue Flat, EPS Guidance Misses Analysts' Expectations

American Airlines (AAL) will report Q2 earnings on Thursday. Analysts expect flat revenue of $14.3 billion and adjusted earnings of $0.77 per share. Heading into earnings, analysts have grown bearish with 6 downward revisions over the last 30 days. Despite positive sentiment among investors in the travel and vacation providers segment, AAL is up only 14.9% over the last month.

Title: American Airlines (AAL) Q2 Earnings: What to Expect

American Airlines (AAL) will report its second-quarter 2025 earnings on Thursday, July 24, before the market opens. Analysts expect the airline to report flat revenue of $14.3 billion, a slowdown from the 2% increase recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.77 per share [1].

Heading into earnings, analysts covering the company have grown increasingly bearish. There have been 6 downward revisions to revenue estimates over the last 30 days, with analysts expecting a 28% year-over-year decline in earnings per share (EPS) to $0.78 [2]. This reflects a growing concern about travel demand amid macroeconomic pressures and tariff uncertainty.

Despite the bearish outlook, American Airlines has shown resilience. The stock has risen 18% in the past month, driven by positive sentiment among investors in the travel and vacation providers segment. Peer Delta Air Lines (DAL) reported better-than-expected Q2 earnings, which helped boost the sector's overall sentiment. American Airlines is up 14.9% over the last month, trading at an average analyst price target of $13.70 compared to the current share price of $12.52 [1].

The company is focused on cost management and debt reduction to improve its financial position. It is also optimistic about the extension of its co-branded credit card partnership with Citi (C), with Citi becoming the exclusive issuer of the AAdvantage cards in the U.S. starting in 2026 [2].

Analysts are divided on the outlook for American Airlines. Barclays analyst Brandon Oglenski expects earnings to remain subdued due to higher jet fuel prices and persistent weakness in U.S. leisure demand, but he thinks investors would welcome any capacity reductions for the fourth quarter. Bernstein analyst David Vernon, on the other hand, expects American Airlines to issue weaker Q3 guidance, but remains optimistic about full-year earnings being positive [2].

In conclusion, American Airlines is heading into earnings with a mixed outlook. While analysts are bearish on revenue and earnings, the stock has shown resilience and positive investor sentiment. The key will be how the company navigates the challenges of higher jet fuel prices and persistent weakness in travel demand.

References:
[1] https://finance.yahoo.com/news/american-airlines-earnings-look-aal-030829746.html
[2] https://www.tipranks.com/news/what-to-expect-from-american-airlines-aal-q2-earnings-this-week