American Airlines shares rose in premarket trading on Thursday after the carrier reported a smaller-than-expected loss and stronger revenue for the third quarter.
The company also lifted its full-year earnings guidance, signaling a stronger-than-anticipated finish to a turbulent 2025.
Narrower loss and revenue beat in the third quarter
For the third quarter, American Airlines reported an adjusted loss of 17 cents per share on revenue of $13.69 billion.
That result was better than analysts’ expectations of a 28-cent loss per share on revenue of $13.63 billion, according to FactSet and LSEG estimates.
The airline’s total revenue rose 0.3% from a year earlier, showing that despite persistent challenges in the travel sector, demand has remained relatively stable.
The company’s net loss came in at $114 million, or 17 cents per share, roughly in line with the adjusted figure.
The stronger results gave investors renewed confidence after a difficult year for airline stocks.
American’s shares, which had fallen about 30% in 2025 as of Wednesday’s close, jumped 5.3% to $12.74 in premarket trading following the results.
Improved outlook and stronger fourth quarter forecast
The airline’s updated guidance pointed to a solid end to the year.
American now expects full-year earnings between 65 cents and 95 cents per share, a sharp improvement from its previous range of a 20-cent loss to an 80-cent profit.
The revised outlook also stands well above Wall Street’s consensus forecast of 42–43 cents per share.
For the fourth quarter, American projects earnings between 45 cents and 75 cents per share, significantly higher than the 31 cents per share analysts had been expecting.
The company also expects capacity, a measure of available seat miles, to grow 3% to 5% compared with the same period last year, suggesting a cautiously optimistic view of travel demand heading into the winter.
American’s brighter outlook marks a turnaround from mid-year concerns.
Its third-quarter forecast in July had disappointed investors after the company, along with several other US carriers, trimmed profit expectations due to weaker-than-expected demand early in 2025.
Travelers had become more cautious amid economic uncertainty and shifting travel patterns, including the impact of tariffs and higher costs.
Industry headwinds continue despite signs of recovery
The airline industry has faced mounting pressure in recent quarters as traditional peak travel periods become less profitable.
Analysts note that earlier school reopenings and evolving vacation habits have reduced summer demand, while some travelers now favor off-peak trips later in the year.
Carriers have also been grappling with an oversupply of domestic flights, forcing them to cut back on growth plans to avoid flying routes that would not generate sufficient returns.
Despite these challenges, American Airline’s ability to narrow losses and issue an upbeat profit forecast suggests that cost control and operational discipline are beginning to pay off.
The company’s performance also comes amid broader industry developments.
Boeing recently received FAA approval to increase 737 Max production, while competitors such as Spirit Airlines secured court approval for a $475 million bankruptcy lifeline.
As American Airlines moves into the final quarter of the year, investors will be watching closely to see if the company can sustain its recovery momentum and deliver on its improved earnings outlook.
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