American Airlines (AAL) shares tumbled 5.05% in pre-market trading on Thursday, despite reporting better-than-expected second-quarter results. The stark decline comes as investors focus on the airline's disappointing outlook for the third quarter.

For Q2 2025, American Airlines posted impressive numbers, beating analyst estimates across the board. The company reported revenue of $14.39 billion, surpassing the expected $14.30 billion. Adjusted earnings per share came in at $0.95, significantly higher than the anticipated $0.78. Additionally, adjusted net income reached $628 million, well above the estimated $513.6 million.

However, the airline's forecast for Q3 has raised concerns among investors. American Airlines projects an adjusted loss per share between $0.10 and $0.60 for the upcoming quarter, which is worse than the analyst consensus of a $0.07 loss. The company also expects Q3 total revenue to be in the range of a 2% decline to a 1% increase compared to the previous year. These projections suggest that the airline industry's recovery may be facing headwinds, despite the strong performance in Q2.

Adding to the uncertainty, American Airlines provided a wide range for its full-year 2025 outlook, expecting adjusted earnings per share to be between a loss of $0.20 and a profit of $0.80. This broad range indicates that the company is navigating through an unpredictable environment, which may be contributing to investor unease.

As the market digests this mixed bag of results and forecasts, American Airlines' stock movement reflects the complex challenges facing the airline industry, including potential shifts in travel demand and economic uncertainties in the coming months.