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American still expects profitable year despite weak domestic leisure demand


Published on 2025-05-23 18:26:31 - Flightglobal
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  • Demand for domestic leisure travel in the USA has stabilised at a level lower than what American Airlines expected at the beginning of the year, though it remains hopeful that it can turn a profit in 2025.

American Airlines remains optimistic about achieving a profitable year despite facing challenges from weak domestic leisure demand, as stated by its chief financial officer Devon May during the third-quarter earnings call on 19 October. The airline reported a third-quarter profit of $263 million, a decrease from the $483 million profit in the same period the previous year, attributed to a 2.8% drop in domestic leisure revenue per available seat mile (TRASM). However, the airline saw a 1% increase in total revenue to $13.5 billion, driven by a 7% rise in international passenger revenue, particularly from the Atlantic and Latin America regions. American Airlines also anticipates a strong fourth quarter, projecting a 5-7% year-over-year increase in TRASM, supported by robust demand in premium and international markets, and expects to end the year with a profit, although it may fall short of its initial guidance of $3-3.75 per share.

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