Thu Jul 24 16:45:05 UTC 2025: Okay, here’s a summary and a news article based on the provided text:
**Summary:**
American Airlines has reinstated its full-year financial outlook, but the forecast is wide-ranging and reflects uncertainty about the strength of domestic travel demand. Weak domestic travel impacted bookings in July, but American expects improvement in the coming months. This outlook contrasts with more optimistic projections from competitors like Delta and United. The airline attributes the uncertainty to the broader economic climate impacting consumer spending. The stock price has dropped in response to the news.
**News Article:**
**American Airlines Issues Cautious Outlook Amid Domestic Travel Concerns**
**Fort Worth, TX** – American Airlines (AAL) has restored its full-year financial forecast after suspending it in April, but the outlook reveals a cautious stance amid concerns about weakening domestic travel demand. The airline, which relies heavily on the U.S. domestic market, projects an adjusted loss per share of 20 cents to a profit of 80 cents for 2025. This wide range reflects the uncertainty in the broader economic climate and its impact on consumer spending.
According to American Airlines CEO Robert Isom, domestic travel demand has been weakened by economic uncertainty. Bookings were particularly soft in July, though the airline expects a gradual improvement through August and September.
“The domestic network has been under stress because of the uncertainty in the economy and the reluctance of domestic passengers to get in the game,” Isom told analysts during an earnings call.
American Airlines expects domestic unit revenue (revenue per seat) to remain lower year-over-year in the third quarter, while non-fuel operating costs are projected to increase by up to 4.5%. The company anticipates an adjusted loss per share of 10 to 60 cents for the third quarter, slightly worse than analysts’ expectations.
The airline’s outlook contrasts with more optimistic forecasts from competitors like Delta and United. The domestic travel sector has been negatively impacted by budget travellers reducing their expenses as the economy faces uncertainty.
Investors reacted negatively to the news, with American Airlines’ stock price falling 7.2% by mid-day trading. This situation highlights the ongoing challenges faced by airlines heavily reliant on the domestic travel market as they navigate economic headwinds and evolving consumer behavior.
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