American Airlines forecast 2025 profit below Wall Street expectations on Thursday, hurt by an uptick in jet fuel prices and efforts to fix a sales-strategy misstep that drove away corporate travelers.

Raymond James analyst Savanthi Syth lowered American Airlines' price target from $24 to $23, citing FY25 1Q guidance misses due to higher fuel prices and capacity issues. Despite challenges, the company's favorable CASM-ex trend for 2025 and a strong free cash flow outlook above $2B support its recovery.

American Airlines last year said it would reverse a business-travel sales strategy that backfired. The airline signed a new credit card deal with Citi late last year. American Airlines reported a jump in fourth-quarter profits with results coming in ahead of analysts' expectations,