American Air CEO Robert Isom comments on conference call

American Air CEO Robert Isom comments on conference call

American Airlines, one of the largest carriers in the United States, reported its second-quarter 2025 financial results, showcasing a mixed performance. The company's CEO, Robert Isom, provided insights during a conference call, highlighting both the challenges and opportunities ahead.

American Airlines reported revenue of $14.4 billion for the second quarter, up 0.4% from the same period last year. Despite this increase, the company reported a net income of $628 million or 91 cents per share, down from $717 million or $1.01 per share in the same quarter a year earlier. The pre-tax margin was 5.8%, lagging behind competitors Delta (11.6%) and United (11%).

CEO Robert Isom commented on the current quarter's performance, stating that domestic travelers are returning, but July was a challenging month due to weather conditions. He expressed optimism about future demand trends. For the current quarter, American Airlines expects a loss per share between 10 cents and 60 cents. For the full year, the carrier anticipates adjusted earnings between a loss of 20 cents per share and a gain of 80 cents per share, with a mid-point of 30 cents. Isom noted that achieving the top end of the range depends on continued strengthening in the domestic market, while the bottom end is expected if macroeconomic weaknesses emerge.

In terms of international operations, American Airlines reported continued strength in premium cabin demand, particularly to long-haul international destinations. International passenger unit revenue grew by 5%, contributing to the company's industry-leading year-over-year improvement in passenger unit revenue for the fourth consecutive quarter. However, domestic passenger unit revenue declined by 6.4%.

In pre-market trading, American Airlines shares were down about 7% to $11.77 a share, reflecting investor concerns about the company's guidance.

References:
[1] https://www.forbes.com/sites/tedreed/2025/07/24/american-airlines-expects-domestic-gains-but-hedges-on-outlook/
[2] https://news.aa.com/news/news-details/2025/American-Airlines-reports-second-quarter-2025-financial-results-CORP-FI-07/default.aspx