American Airlines reports fourth-quarter and full-year 2025 financial results

• Record fourth-quarter revenue of $14.0 billion and record full-year revenue of $54.6 billion
• The government shutdown negatively impacted revenue in the fourth quarter by approximately $325 million
• Fourth-quarter and full-year GAAP net income of $99 million and $111 million, or $0.15 and $0.17 per diluted share, respectively
• Excluding net special items¹, fourth-quarter and full-year net income of $106 million and $237 million, or $0.16 and $0.36 per diluted share, respectively
• Reduced total debt² by $2.1 billion in 2025
• Full-year 2026 adjusted EPS³ expected to be between $1.70 and $2.70
• Company expects free cash flow⁴ of more than $2 billion in 2026

“American Airlines is positioned for significant upside in 2026 and beyond,” said American’s CEO Robert Isom. “We have built a strong foundation, and we look forward to taking advantage of the investments we have made in our customer experience, network, fleet, partnerships and loyalty program. The strategy we have in place will put American in the right position as we celebrate our centennial and embark on our next 100 years as a premium global airline.»

Delivering on revenue potential

American delivered record fourth-quarter revenue of $14.0 billion, despite the $325 million negative impact from the government shutdown. Year-over-year passenger unit revenue performance improved sequentially versus the third quarter in each of the international entities. The majority of the impact from the government shutdown was felt in the domestic entity, where passenger unit revenue was down 2.5% year over year. Excluding the negative impact from the government shutdown, year-over-year domestic passenger unit revenue would have been positive for the quarter. Premium product offerings continued to perform exceptionally well, with year-over-year premium unit revenue outperforming the main cabin in the fourth quarter. Following softer-than-expected bookings late in the fourth quarter, bookings strengthened meaningfully in January. Systemwide revenue intakes for the first three weeks of 2026 are up double digits year over year, driven by strong performance in the premium cabins and corporate channels. Based on these bookings, the company expects solidly positive first-quarter unit revenue for the domestic entity and the system, with total revenue growing 7.0%-10.0%.

Delivering a consistent, elevated customer experience

American is elevating every step of the travel journey for its customers. The Flagship Suite^® product, introduced in June 2025, has set a new industry standard for luxury in long-haul travel and continues to lead in customer satisfaction since entering service. American offers the industry’s most extensive premium lounge network and continues to make significant investments in its Flagship^® and Admirals Club^® lounges.

American is improving the inflight experience with the rollout of free high-speed satellite Wi-Fi, sponsored by AT&T, for AAdvantage^® members starting this month. The airline also recently announced new enhancements to its mobile app to give customers real-time solutions all in one place to self-serve their itineraries for a smoother, more autonomous travel experience during irregular operations. The American team delivered a resilient operation in the fourth quarter despite disruptions from the government shutdown and severe winter weather in the Northeast and Chicago during the holiday travel period.

American knows the most valuable form of customer service is an on-time operation. The company is investing in strengthening its schedules across the system and re-banking Dallas Fort Worth International Airport (DFW), its largest and most impactful hub, to a 13-bank structure, providing more certainty for customers. This is expected to help ensure customers experience more on-time departures, more on-time arrivals, fewer delays and an overall smoother travel experience.

Maximizing the power of its network and fleet

American operates the strongest network in the U.S. — the world’s most important aviation market — with eight hubs in the 10 largest metropolitan areas. This network, combined with the global reach of its partners, connects more people to more places than any other airline. Looking ahead, the company expects to continue to expand its partnerships, including its global joint business partners and the oneworld alliance.

The company has increased its investment in the new Terminal F at DFW, positioning that airport to become the largest single-carrier hub in the world and deliver unmatched connectivity for customers. American also announced plans to retrofit its Boeing 777-300ERs, 777-200ERs, Airbus A319s and A320s, which, alongside the premium 787-9 and A321XLR deliveries, are expected to drive premium seating growth throughout the decade.

Building partnerships that deepen loyalty and lifetime value

American invented airline loyalty and continues to lead the industry by delivering more value per mile, more rewards and more reasons for customers to return. Enrollments in the AAdvantage^® program grew 7% year over year, resulting in the highest number of annual enrollments in the airline’s history. In 2025, spending on co-branded credit cards increased 8% year over year. During the fourth quarter, American successfully transitioned inflight and airport credit card acquisition channels to Citi as part of its exclusive and expanded partnership, which took effect at the beginning of 2026.

Advancing sales, distribution and revenue management efforts

Exiting 2025, the company has successfully restored its historical share of indirect channel revenue and is focused on further growth in 2026. American is also enhancing its fare products and making improvements across commercial processes and technology to support stronger revenue performance.

Balance sheet and liquidity

The company reduced total debt² by $2.1 billion in 2025 and ended the year with $36.5 billion of total debt² and $30.7 billion of net debt⁵. At the midpoint of the company’s adjusted earnings per diluted share and capital expenditures guide, the company expects to achieve its total debt² goal of less than $35 billion in 2026, a year ahead of schedule. The company ended the year with $9.2 billion of total available liquidity, comprised of cash and short-term investments plus undrawn capacity under revolving credit and other facilities.

Financial guidance

The guidance below reflects the company’s preliminary estimate of the impact from the ongoing Winter Storm Fern. The storm has resulted in more than 9,000 flight cancellations to date, making it the largest weather-related operational disruption in American’s history. As a result, the company’s first-quarter 2026 guidance incorporates approximately a 1.5-point reduction to capacity, an estimated negative revenue impact of $150-$200 million and approximately a 1.5-point increase in CASM-ex⁶.

The company is committed to delivering on its revenue potential through four strategic pillars of delivering a consistent, elevated customer experience, maximizing the power of its network and fleet, building partnerships that deepen loyalty and lifetime value and advancing sales, distribution and revenue management efforts. We expect this multiyear effort to begin delivering results in 2026, and the company expects to deliver nearly $2.00 of improvement in adjusted earnings per diluted share versus 2025 at the midpoint of the guidance range.

Note: The full-year tax rate is expected to be 25%. This rate may vary by quarter and is sensitive to fluctuations in pretax earnings due to certain permanent book differences that are not tax deductible. The company expects its full-year total adjusted nonoperating expense⁶ to be approximately $1.25 billion.