American Airlines Group Inc (NASDAQ:AAL, ETR:A1G) warned of a surprise third-quarter loss on Thursday, sending its shares down 7.7% in morning trading despite reporting record revenue and stronger-than-expected second-quarter earnings.
The carrier forecast an adjusted loss of $0.60 to $0.10 per share for the third quarter, far below analysts’ expectations of a $0.76 profit.
For the full year, American projected earnings between a loss of $0.20 and a gain of $0.80, with the midpoint well below consensus and the high end dependent on a pickup in domestic demand.
The cautious outlook overshadowed a strong second quarter, in which revenue rose 8% year-over-year to a record $14.4 billion, beating estimates of $14.29 billion. Adjusted earnings per share came in at $0.95, ahead of the $0.78 expected.
CEO Robert Isom said American delivered record revenue in an “evolving demand environment,” citing growth in premium travel and restored indirect sales channels. The AAdvantage loyalty program saw a 7% increase in active accounts, while co-branded credit card spend rose 6% year-over-year.
The airline reported $2.5 billion in free cash flow in the first half of 2025 and ended the quarter with $12 billion in liquidity and $29 billion in net debt.