American Airlines Stock Drops Despite Record Revenue

What Happened

American Airlines (AAL) shares declined Thursday morning after the airline reported record fourth-quarter revenue but issued a weak profit outlook for the first quarter.

Key Earnings Highlights

• Revenue: $13.7 billion (vs. $13.4 billion expected).
• Adjusted EPS: $0.86 per share (vs. $0.65 expected).
• Q1 Outlook: Projected loss between $0.20 and $0.40 per share.

Analyst Perspective

Bloomberg Intelligence analyst George Ferguson noted that American Airlines is “catching up” to competitors like United (UAL) and Delta (DAL), though investors remain cautious due to lower capacity and higher costs.

Outlook

Despite concerns over first-quarter profitability, Ferguson believes American Airlines is improving but may need a year to close the gap with its competitors. The company’s loyalty program remains an area needing further development.