American Airlines Withdraws Full-Year Guidance Amid Challenges

American Airlines reported a narrower-than-expected non-GAAP loss of $0.59 per share and first-quarter revenue of $12.6 billion, slightly exceeding analyst expectations. Despite these results, the company withdrew its full-year guidance due to prevailing economic uncertainties and industry challenges, though it projected a strong Q2 2025 earnings range. Analysts remain cautiously optimistic, with an average one-year price target of $14.66, suggesting significant upside potential from the current stock price. The airline holds an 'Outperform' rating from brokerage firms, and GuruFocus estimates a GF Value of $12.37 for the stock over the next year. CEO Robert Isom emphasized recent efforts to refresh the fleet and manage costs as positioning the company to weather industry uncertainty, but long-term growth has been sluggish with slowing demand. Investors are advised to exercise caution given the competitive pressures and uncertain profitability outlook.