10:25 AM EDT, 10/23/2025 (MT Newswires) -- American Airlines ( AAL ) plans to turn a profit this year as the air carrier on Thursday posted a smaller-than-estimated third-quarter loss, while revenue unexpectedly increased year over year.

The company now anticipates reporting adjusted earnings of $0.65 to $0.95 per share for 2025. The airline's previous guidance ranged from a $0.20 loss to earnings of $0.80. The current consensus on FactSet is for non-GAAP EPS of $0.41.

For the September quarter, American Airlines ( AAL ) swung to an adjusted loss of $0.17 a share from earnings of $0.30 the year before, compared with Wall Street's view for a larger loss of $0.28. Overall operating revenue edged up 0.3% to $13.69 billion, defying expectations for a drop to $13.63 billion.

The stock advanced 3.5% in Thursday trade, but has lost 28% so far this year.

Domestic passenger revenue nudged 0.5% higher to $8.72 billion, while international passenger sales declined 2.5% to $3.75 billion.

Total revenue per available seat miles, which is commonly used in the airline industry to measure efficiency, decreased 1.9%, but improved sequentially throughout the quarter and turned positive in September, American Airlines ( AAL ) said.

The company's premium segment continued to outperform the main cabin, which has improved "since its low point in July," Chief Financial Officer Devon May said during an earnings call, according to a FactSet transcript.

For the ongoing three-month period, the airline expects adjusted EPS to come in between $0.45 and $0.75, while the Street is looking for $0.30. Revenue is forecast to increase 3% to 5%, according to May.

"We recognize there are significant revenue opportunity ahead of us and we're excited about the good work underway to accelerate our revenue growth and view that as considerable upside as we move into 2026," Chief Executive Robert Isom told analysts.

Unit revenue is estimated to be flat in the fourth quarter on capacity growth of 3% to 5%, as "we continue to build back our hubs and adjust our schedules to meet evolving seasonal demand trends," May said.

Price: 12.54, Change: +0.45, Percent Change: +3.72