American Airlines Group (AAL) investor relations material

Executive summary

• Achieved record quarterly revenue of $16.7 billion, up 16.3% year over year, driven by strong demand, commercial execution, and premium segment outperformance.

• Net income for Q2 2026 was $71 million ($0.11 per diluted share GAAP), with adjusted net income of $99 million ($0.15 per diluted share), down sharply from the prior year due to a significant increase in fuel costs.

• Premium revenue and loyalty program enrollments saw significant increases, with premium revenue outpacing non-premium and AAdvantage enrollments up over 30% year over year.

• Operational improvements, including rebanking at DFW and customer experience enhancements, contributed to higher satisfaction scores and improved network performance.

• Ended the quarter with over $11.3 billion in available liquidity, supporting ongoing investments and financial stability.

Financial highlights

• Total operating revenues reached $16.7 billion for Q2 2026, a 16.3% increase year over year.

• Operating income was $446 million, with an operating margin of 2.7%; net income dropped 88.2% year over year to $71 million.

• Fuel expense surged 83% year over year to $4.88 billion, offset by higher fares and demand.

• Passenger revenue increased 15.9% to $15.2 billion; cargo revenue rose 29.7% to $273 million.

• Cash flow from operations for the first six months of 2026 was $4.7 billion, up from $3.4 billion in the prior year period.

Outlook and guidance

• Q3 2026 revenue expected to grow 16–19% year over year; capacity to increase 3–5% year over year.

• Anticipates average Q3 fuel price of $3.75/gallon and CASM-ex to rise 2.5–4.5% year over year.

• Full-year 2026 adjusted EPS guidance ranges from ($0.65) to $0.65, reflecting fuel cost volatility and a ~$6 billion headwind from higher jet fuel prices.

• Positive free cash flow expected for the year, with net debt projected to decline.

• Focus on cost management, operational efficiency, and ongoing investments in digital solutions.