American Airlines Cuts 2025 Profit Outlook Again

American Airlines has reinstated its 2025 financial outlook but set a wide and lower-than-expected range from a loss of $0.20 to a profit of $0.80 per share, citing economic uncertainty and subdued domestic travel demand. The carrier warned of a third-quarter adjusted loss between $0.10 and $0.60 per share, leading to a drop in its stock price. Domestic weakness, driven by cautious spending among budget travelers and the impact of U.S. tariffs, has forced airlines to lower fares and eroded profits during the peak summer travel season. While international routes have shown some revenue growth, the domestic segment—which remains American's main revenue source—continues to struggle. Several major airlines have also withdrawn or lowered financial forecasts in response to broader market uncertainty. Despite these challenges, American Airlines reported a slight increase in total operating revenue for the second quarter, though net income declined compared to the previous year.