American Airlines scales back 2025 profit outlook as third-quarter forecast falls short

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American Airlines

shares slumped 9% Thursday after the carrier’s third-quarter profit forecast fell short of Wall Street’s expectations and it reinstated its 2025 financial forecast well below its outlook at the start of the year.

CEO Robert Isom told CNBC’s “Squawk Box” that the results are driven by consumer weakness, flat corporate travel demand that continued into the start of the summer and operational problems from a series of storms.

“July’s been a tough month … because of the domestic consumer weakness,” Isom said.