American Airlines Group (AAL) Q1 2026 earnings summary

Executive summary

• Achieved record first-quarter revenue of $13.9 billion, up 10.8% year-over-year, with strong demand and the nine highest revenue intake weeks in company history, despite a $320 million revenue impact from winter storms.

• Reported a GAAP net loss of $382 million (or $(0.58) per share); adjusted net loss per diluted share was $0.40, reflecting improved performance year-over-year.

• Ended the quarter with total debt of $34.7 billion, the lowest since mid-2015, and generated $3.4 billion in free cash flow.

• Focused on elevating customer experience, expanding premium offerings, growing the global network, and strengthening loyalty program engagement.

• Anticipates continued robust demand and expects Q2 revenue growth of 13.5%-16.5% year-over-year.

Financial highlights

• Record first-quarter revenue of $13.9 billion, up from $12.6 billion year-over-year, with passenger revenue rising 9.7% to $12.5 billion and PRASM up 6.5%.

• Adjusted loss per diluted share was $0.40; GAAP net loss was $382 million; adjusted net loss was $267 million, a 30.8% improvement year-over-year.

• Free cash flow was $3.4 billion, with liquidity at $10.8 billion at quarter-end.

• Operating loss narrowed to $41 million from $270 million in the prior year quarter.

• Aircraft fuel expense rose 13.2% to $2.93 billion, with average price per gallon up 10.7%.

Outlook and guidance

• Q2 adjusted EPS guidance is between a loss of $0.20 and a profit of $0.20; full-year midpoint guidance is flat to 2025 despite over $4 billion in higher jet fuel expenses.

• Q2 2026 revenue growth projected at 13.5% to 16.5% year-over-year; available seat miles up 4% to 6%.

• Q2 capacity is about 1 point below initial plans due to suspended routes and reduced marginal flying.

• Expects over $200 million incremental savings in 2026 from business transformation, totaling $1 billion annual savings since launch.

• No fuel hedging contracts are outstanding; company remains fully exposed to fuel price volatility.