American Airlines Braces for Turbulence: Are Tariffs and Corporate Cuts Threatening Its 2025 Takeoff? 

American Airlines is navigating a complex and turbulent operating environment as macroeconomic pressures, declining consumer confidence, and reduced corporate travel weigh heavily on the airline industry. While the broader sector has been battered by a steep drop in airline stock valuations—American Airlines itself has declined 24% in the past month alone—American has nonetheless posted a strong financial performance in recent quarters. In Q4, the carrier reported an adjusted pretax profit of $808 million and EPS of $0.86, beating guidance and contributing to a full-year adjusted pretax profit of $1.8 billion. This profitability has been underpinned by significant operational reengineering, including contract extensions with major workgroups, a new exclusive agreement with Citi for the AAdvantage credit card, and cost-saving initiatives that yielded $500 million in 2024. Yet the airline is not insulated from mounting pressures across the industry. Consumer confidence in March hit a four-year low, and a significant drop in corporate travel—especially among key sectors like automotive and defense—has left airlines scrambling to adjust capacity and pricing strategies.