American Airlines said Thursday that efforts to shore up its profitability had been outweighed by softening demand for domestic leisure travel and a fatal collision in January near Washington, D.C.
The carrier reported a net loss of $437 million for the first quarter, a stark contrast to its rivals Delta Air Lines and United Airlines, which both reported profits. The first quarter is a historically weak one for airlines, but Delta and United said that premium and international travel revenues offset the weakness in domestic demand.
American added that it produced $12.6 billion in total revenue for the quarter. International revenues were up 2.9% in the first quarter compared to the same time last year.
Like most other airlines, American also pulled its 2025 forecast, saying that it would provide an update once the “economic outlook becomes clearer.”
Distribution Strategy Reset and Free In-Flight Wi-Fi
The carrier is still reeling from the fallout of a botched distribution strategy and spent much of last year working to reset that strategy. The previous approach, which involved American selling tickets directly, received backlash from travel agencies and caused a decline in revenues.
Now, American said it is on track to restore revenues from indirect channels to previous levels by the end of the year.
Just a week ago, American announced that it would start offering free in-flight Wi-Fi in 2026 as part of a wider effort to revamp its commercial strategy.
American lagged behind its peers when it came to free Wi-Fi. Delta unveiled plans to make Wi-Fi free across its international network, and United said it would ditch Wi-Fi fees after installing Starlink.
The carrier also appointed Heather Garboden to be its chief customer officer, with CEO Robert Isom telling staff in February that “today’s customers are choosing their airline based on experience and premium products — and we want American to be customers’ carrier of choice.”
Airlines Sector Stock Index Performance Year-to-Date
What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance.
Read the full methodology behind the Skift Travel 200.
