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 (NASDAQ:UAL)' 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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