Image Courtesy of American Airlines
American Airlines Posts a $473 Million Loss, Citing ‘Lagging Demand’
April 25, 2025
American Airlines has posted a $473 million loss in its last quarter, citing “lagging demand” as the main reason for its nearly half-a-billion-dollar deficit.
Dallas-Fort Worth-based ABC affiliate, 8 ABC, is reporting that the airline, which is also based in Fort Worth, posted its Q1 2025 results on April 24. In addition to “lagging demand” for its services, American Airlines claimed that the January accident of an Army helicopter and an AA flight near Washington, D.C., also contributed to the company’s financial tumble.
“Throughout the quarter, American continued to restore revenue in indirect channels and remains on track to restore its revenue share from indirect channels to historical levels exiting the year. These efforts were offset by a number of factors, including economic uncertainty that pressured domestic leisure demand and the tragic accident of American Eagle Flight 5342,” a statement on American Airlines’ website reads.
The airline joined several other airlines, including Southwest and Delta, in deciding that the economic picture is too uncertain to issue full-year estimates for 2025.
American Airlines Offering Free In-Flight Wi-Fi Next Year
Meanwhile, in what appeared to be an attempt to soften the blow of the report, the airline recently announced that it would be offering free in-flight Wi-Fi to its customers beginning in 2026.
The free Wi-Fi is being provided through a partnership with AT&T, which will assist in covering some of the costs associated with getting the service up and operating. The internet will be available on planes equipped with equipment capable of connecting to Viasat and Intelsat satellites.
“We’ve been working diligently to outfit our aircraft with best-in-class high-speed Wi-Fi and together with AT&T are proud to offer those services at no cost to our most loyal customers,” said Heather Garboden, chief customer officer of American Airlines, in a press release.
Before introducing the free Wi-Fi service, American tested the system on a few specific routes. The testing demonstrated its feasibility, even outperforming predictions.
American already charges for Wi-Fi on its flights. Passengers must pay $10 for each individual trip or $599 for an annual subscription.
Recent News
