American Airlines Stock Sinks on Weak Outlook

Core Insights - American Airlines (AAL) shares declined in premarket trading due to a weak outlook overshadowing better-than-expected fourth-quarter results [1][4] - The airline reported a fourth-quarter net income of $590 million, or 84 cents per share, on revenue of $13.66 billion, surpassing analyst expectations of $426 million, or 60 cents per share, on revenue of $13.39 billion [1] Financial Performance - For fiscal 2025 first-quarter, American Airlines expects an adjusted loss of 20 to 40 cents per share, significantly worse than the consensus loss estimate of 1 cent per share [2] - The full-year adjusted EPS outlook for 2025 is projected to be between $1.70 and $2.70, with a midpoint of $2.20, which is below the consensus estimate of $2.35 [2] Market Comparison - American Airlines' results contrast with those of competitors Delta Air Lines (DAL) and United Airlines (UAL), which provided more optimistic outlooks and reported growth in their premium products [3] - American Airlines stock fell by 7% in premarket trading, while United and Delta shares have seen significant increases of 166% and 78% respectively over the past year [3]