American Airlines (NASDAQ:AAL) has revised its full-year profit forecast downward after experiencing a Q3 loss, largely due to rising costs and a one-off charge related to a recent contract with the pilots' union. This news came on Thursday, causing a minor uptick in the company's shares in premarket trading, following a 5% decline triggered by United Airlines' financial update.
Despite the Q3 loss, American Airlines emphasized robust demand for travel and increased revenue from corporate, government, and business travel sectors. The airline's Q3 revenue saw a marginal increase to $13.48 billion, falling short of analysts' expectations of $13.51 billion.
The company reported a loss of $545 million for the third quarter, marking a significant shift from the previous year's profit of $483 million. The Israel-Hamas conflict has also raised concerns over Q4 earnings, contributing to a widespread drop in airline stocks.
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