American Airlines posts narrower-than-expected Q1 loss

Investing.com -- American Airlines Group Inc. (NASDAQ: AAL) reported a first-quarter loss that was narrower than Wall Street expected, while revenue topped analyst estimates, though shares slipped 1.2% premarket following the results.

The carrier posted an adjusted loss of $0.40 per share for the first quarter, beating the analyst consensus of a $0.47 loss. Revenue reached a record $13.91 billion, surpassing the $13.79 billion estimate and marking a 10.8% increase from the same quarter last year. The company attributed the strong revenue performance to its commercial initiatives, despite an estimated $320 million impact from winter storms.

For the second quarter, American Airlines expects adjusted earnings per share between -$0.20 and $0.20. The midpoint of zero compares to the analyst consensus, which was not disclosed. The company projects second-quarter revenue growth of 13.5% to 16.5% YoY.

For the full year 2026, the company issued guidance of -$0.40 to $1.10 per share, with the midpoint of $0.35 representing approximately flat performance compared to 2025, despite a more than $4 billion increase in fuel expenses.

"American delivered record revenue in the first quarter, and we're on track for another record in the second quarter," said CEO Robert Isom. "This revenue momentum is the result of focus on our four commercial priorities — elevating the customer experience, growing our global network, driving premium revenue and leading in loyalty."

The airline reported total unit revenue up 7.6% YoY, with particularly strong performance in the Atlantic region, where passenger unit revenue increased 16.7%. The company ended the quarter with total debt of $34.7 billion, its lowest level since mid-2015, and $10.8 billion in liquidity.