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American Airlines’ AAL first-quarter 2025 loss (excluding 13 cents from non-recurring items) of 59 cents per share was narrower than the Zacks Consensus Estimate of a loss of 69 cents. In the year-ago quarter, AAL reported a loss of 34 cents per share. Operating revenues of $12.55 billion edged past the Zacks Consensus Estimate of $12.52 billion but decreased 0.2% year over year.
Passenger revenues, accounting for 90.8% of the top line, decreased 0.6% year over year to $11.4 billion. The metric was just shy of our estimate of $11.5 billion. Passenger revenues were hurt by the slowdown in domestic leisure demand due to tariff woes. Cargo revenues increased 1.1% to $189 million. The metric surpassed our estimate of $171.7 million. Other revenues increased 5% to $971 million, which surpassed our expectation of $891.6 million.
American Airlines Price, Consensus and EPS Surprise
American Airlines price-consensus-eps-surprise-chart | American Airlines Quote
Total revenue per available seat miles (a key measure of unit revenues) increased to 17.95 cents from 17.83 cents recorded a year ago. Passenger revenue per available seat miles increased 0.3% to 16.3 cents. However, the figure was lower than our expectation of 16.5 cents. Consolidated yield increased 1.4% to 20.21 cents, ahead of our estimate of 19.69 cents.
Consolidated traffic (measured in revenue passenger miles) decreased 1.9% year over year. Capacity (measured in average seat miles) contracted 0.9%. The move to trim capacity is aimed at protecting margins and avoiding lowering fares. Consolidated load factor (percentage of seats filled by passengers) decreased 0.9 points to 80.6%. The figure for the load factor was lower than our expectation of 83.8%.
Total operating costs (on a reported basis) inched up 2% year over year to $12.8 billion, with expenses on salaries, wages and benefits growing 9.2% to $4.2 billion. The labor deal, inked with its pilots in 2023, contributed to this increase. Expenses on aircraft fuel and taxes decreased 13.2% to $2.6 billion. Average fuel price per gallon (including related taxes) decreased to $2.48 from $2.86 a year ago.
Consolidated operating costs per available seat mile (excluding fuel and special items) increased 7.8% to 14.54 cents. The actual figure was a tad more than our estimate of 14.38 cents. Fuel gallon consumption was flat at $1.04 billion in the first quarter of 2025.
American Airlines, currently carrying a Zacks Rank #5 (Strong Sell), exited the quarter with $10.8 billion of total available liquidity.
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