American Airlines pulls full-year outlook on concerns over travel demand

Q1 loss widens to $473 million as international travel strengthens, but economic uncertainty weighs on leisure flights

American Airlines has pulled its full-year financial forecast after seeing a notable drop in domestic weekend travel demand during the first quarter. The airline pointed to economic uncertainty and a chilling effect from a high-profile plane crash over Washington, D.C. in January as key reasons for the slowdown in leisure travel within the U.S.

Key takeaways

• Domestic leisure travel softened, particularly around weekends, due to economic concerns and safety-related public anxiety.
• American noted that weekend travel demand, typically a strong segment driven by leisure travelers, underperformed expectations in Q1.
• The January plane crash over D.C. contributed to consumer hesitation, compounding the effects of broader economic uncertainty.
• In contrast, international travel demand remained resilient, with revenue per available seat mile rising 2.9%—particularly strong across the Atlantic and Pacific.
• CEO Robert Isom emphasized the airline’s strategic flexibility, stating the company is prepared to navigate fluctuations in traveler behavior.

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