American said that it expects to report a small profit for the first quarter, but one that could easily be below Wall Street expectations.
JPMorgan analyst Jamie Baker said the slowing is primarily in bookings for travel within the United States, which were running 40% over 2022 levels in late January but flat by early April. They could fall below year-ago levels from here, he wrote. Delta Air Lines will be the first major U.S. airline to report first-quarter results on Thursday, but American’s update might have provided a glimpse of what is to come.
Cowen analyst Helane Becker said, however, that American’s update was better than she expected and that second-quarter revenue should remain strong because demand is solid while the supply of airline seats is still below 2019 levels.
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