American Airlines Group (NASDAQ:AAL) Provides Investor Relations Update Regarding First-Quarter 2025 Expectations

American Airlines Group (NASDAQ:AAL) has recently released an update on its investor relations, outlining expectations for the first quarter of 2025. The company anticipates its first-quarter capacity to remain approximately flat to down 2.0% compared to the same period in 2024. Expectations for the full year indicate a growth in capacity by low single digits year over year.

In terms of total revenue, American Airlines Group forecasts a rise of approximately 3.0% to 5.0% in the first quarter compared to 2024. For the full year, total revenue is expected to increase by approximately 4.5% to 7.5% year over year.

The company also provided insights into its operating metrics, anticipating that the first-quarter cost per available seat mile (CASM-ex) will rise by high single digits. This increase is attributed to factors such as capacity adjustments, the mix of regional and mainline capacity, and recent collective bargaining agreements. Sequentially, the company expects CASM-ex to improve, with full-year CASM-ex projected to increase by mid-single digits primarily due to rising salaries and benefits.

American Airlines Group forecasts a first-quarter adjusted operating margin to be approximately flat to 1.0%. The full-year total adjusted nonoperating expense is expected to be around $1.35 billion, a decrease of approximately $90 million from 2024. Tax provision is estimated at an effective rate of around 25% for both the first quarter and full year, with the majority expected to be non-cash.

Adjusted earnings per diluted share for the first quarter are projected to be between ($0.20) and ($0.40), based on an anticipated share count of 658.8 million shares. For the full year, adjusted earnings per diluted share are expected to be between $1.70 and $2.70, using a share count of 726.8 million shares.

Regarding free cash flow, American Airlines Group anticipates generating over $2 billion for the full year. The company provided detailed footnotes, highlighting the non-GAAP measures used in its forecasts. These measures exclude special items and aim to provide transparency in its financial guidance.

The company’s forward-looking statements also acknowledge potential risks and uncertainties, emphasizing the importance of monitoring factors that could affect the actual results. These insights into American Airlines Group’s financial outlook for the first quarter and full year of 2025 offer investors a glimpse into the company’s strategic planning and performance expectations.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read American Airlines Group’s 8K filing here.

American Airlines Group Company Profile

American Airlines Group Inc, through its subsidiaries, operates as a network air carrier. The company provides scheduled air transportation services for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, DC, as well as through partner gateways in London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo.