American Airlines Group Inc. (NASDAQ: AAL) today reported its second-quarter 2025 financial results, including:
- Record quarterly revenue of $14.4 billion
- Second-quarter GAAP net income of $599 million, or $0.91 per diluted share
- Excluding net special items1, second-quarter net income of $628 million, or $0.95 per diluted share
- Second-quarter operating margin of approximately 8%
- Ended the quarter with $12 billion of total available liquidity
“American delivered record revenue in an evolving demand environment in the second quarter thanks to the hard work and dedication of our team,” said American’s CEO Robert Isom. “We remain confident that the actions we have taken over the past several years to refresh our fleet, manage costs and strengthen our balance sheet position us well for the future. The investments we have made toward achieving our revenue potential, including bolstering our network, customer experience and loyalty program, are paying off, and the team remains focused on delivering on our long-term strategy.”
Revenue performance
American produced record quarterly revenue of $14.4 billion. The company continued the restoration of revenue from indirect channels, driven by a faster-than-expected recovery in leisure channels, further solidifying its plan to return to historical share of indirect channel revenue exiting this year. American saw continued strength in premium cabin demand in the second quarter, particularly to long-haul international destinations. All international entities delivered positive unit revenue growth year over year, with Atlantic passenger unit revenue up 5%. These results contributed to American’s industry-leading passenger unit revenue year-over-year improvement for the fourth consecutive quarter.
AAdvantage program and co-branded credit card performance
American continues to see strong engagement with its industry-leading AAdvantage® loyalty program, with active accounts up 7% year over year. Spending on co-branded credit cards increased 6% year over year as customers continue to value earning rewards for future travel with American.
Customer experience
American’s new Customer Experience organization continues to make meaningful progress in elevating the travel journey. In the second quarter, American introduced the ability for customers to use miles as a form of payment for instant upgrades and announced plans to open a new Flagship® lounge and nearly double the amount of lounge space at Miami International Airport. American also debuted its new Flagship Suite®, an elevated premium inflight experience that is expected to expand to more destinations this winter.
Operational performance
The American team delivered a resilient operation in the second quarter, which had a 36% increase in disruptive operational events year over year primarily driven by increased storm activity at the airline’s hubs in Dallas-Fort Worth, Chicago, Washington, D.C., and the Northeast. American continues to demonstrate its ability to quickly recover from irregular operations, and its investments in technology are driving additional enhancements to both reliability and the customer experience.
Balance sheet and liquidity
The company’s operating cash flow of $3.4 billion and free cash flow2 generation of $2.5 billion in the first half of 2025 enabled further strengthening of its balance sheet. The company ended the second quarter with $38 billion of total debt3 and $29 billion of net debt4. The company ended the second quarter with $12 billion of total available liquidity, comprised of cash and short-term investments plus undrawn capacity under revolving credit and other facilities.
Guidance and investor update
Based on its current booked revenue, expectations of future demand trends and fuel price, and excluding the impact of special items, the company expects a third-quarter 2025 adjusted loss per diluted share5 to be between ($0.10) and ($0.60). Based on recent booking trends, American expects its full-year adjusted earnings (loss) per diluted share5 to be between ($0.20) and $0.80, with a mid-point of $0.30. The company believes the top end of the range is achievable if demand in the domestic market continues to strengthen and only expects to be at the bottom end of the range if there were to be macro weaknesses that are not seen today.
