American Airlines has revised its full-year profit forecast, now projecting an adjusted loss per share of 20 cents to a profit of 80 cents, significantly lower than analysts' expectations of 61 cents. The airline attributes this to weaker-than-expected domestic travel demand due to broader economic uncertainty, impacting bookings in July. CEO Robert Isom stated that the domestic network has been under pressure due to economic uncertainty and passenger hesitation. While July is expected to be the low point, improvements are anticipated in August and September. American's revised outlook contrasts with more optimistic forecasts from competitors like Delta and United.

The company expects its domestic unit revenue to remain lower year-over-year in the third quarter, with non-fuel operating costs potentially increasing by up to 4.5 percent. American's domestic market was the weakest area in the second quarter, showing a 6.4 percent decline in unit revenue compared to the previous year. This contrasts with growth in its international markets. The company's stock price fell 7.2 percent following the announcement.

Impact Statement: American Airlines' lowered profit outlook reflects broader concerns about the US economy and its impact on consumer spending and the travel industry. The airline's performance highlights the vulnerability of domestic-focused carriers to economic downturns.