American Airlines posted a third-quarter loss but raised its profit outlook for 2025, signaling confidence heading into the end of the year. The Fort Worth, Texas-based carrier reported a net loss of $114 million, or $0.17 per diluted share, as revenue rose to a record $13.7 billion.
American said demand strengthened through the quarter, with unit revenue — the amount earned per seat flown — turning positive in September after several months of weaker trends. Premium-cabin sales continued to outperform the main cabin as more travelers opted for upgrades and loyalty benefits.
Despite the loss, the airline expects to finish 2025 on stronger footing, forecasting adjusted earnings of $0.65 to $0.95 per share for the full year and more than $1 billion in free cash flow.
American CEO Robert Isom said the carrier has built a stronger foundation by managing costs and renewing its focus on customers and loyalty. He noted that premium-cabin demand remains particularly strong.
American now expects adjusted earnings per share for the full year to land between $0.65 and $0.95 — an improvement compared with earlier forecasts. For the fourth quarter, it expects adjusted earnings per share between $0.45 and $0.75.
The carrier also ended the quarter with about $10.3 billion in available liquidity, and while its total debt remains high, it says it remains on track to bring debt down by 2027.
Despite challenges from summer storms, outages at Federal Aviation Administration air-traffic control systems, and other issues, American says its operations held up well and it recovered quickly from disruptions in the third quarter.
The airline continues expanding its premium products and services. It has highlighted the roll-out of its Flagship Suite seats on the Boeing 787-9, partnerships for gourmet coffee and champagne onboard, and plans for new lounges in Miami and Charlotte. These enhancements align with its strategy of earning more from higher-yield customers.
Industry watchers point out that American is benefitting from wider trends in aviation: fewer seats in the market, higher fares and more affluent travelers willing to pay for comfort. That dynamic is helping carriers that have faced weaker demand overall.
Still, challenges remain. American’s domestic main-cabin unit revenue remains under pressure in some segments, and macroeconomic factors such as inflation, fuel costs and labor continue to weigh on the airline.
American said it expects demand to remain steady into the holiday travel period and forecast a return to profitability in the fourth quarter. The airline plans to end 2025 with more than $1 billion in free cash flow, helped by stronger premium sales and new revenue from its AAdvantage loyalty program.
Despite operational challenges during the summer, the carrier maintained high completion rates and said it recovered quickly from disruptions tied to storms and air traffic system outages. American added that its cost-control measures and network adjustments should support improving margins in 2026.
