American Airlines Group (AAL) Q4 2024 earnings summary

Executive summary

• Achieved record full-year revenue of $54.2B and Q4 revenue of $13.7B, driven by capacity adjustments and strong demand.

• Achieved $15B total debt reduction from peak levels, a year ahead of schedule, with total debt at $39B at year-end 2024.

• Generated record free cash flow of $2.2B in 2024 and reported Q4 adjusted EPS of $0.86, exceeding guidance.

• Announced a 10-year exclusive co-branded credit card agreement with Citi, expected to drive incremental value and expand loyalty.

• Achieved nearly $500M in cost savings in 2024, exceeding targets.

Financial highlights

• Q4 operating income was $1.13B (GAAP), up 72.7% year-over-year; full-year operating income was $2.61B.

• Q4 net income (excluding special items) was $609M; Q4 GAAP net income was $590M.

• Q4 adjusted EBITDA margin was 14.9%; Q4 adjusted operating margin was 8.4%.

• Q4 diluted EPS was $0.84 (GAAP) and $0.86 (adjusted); full-year diluted EPS was $1.24 (GAAP) and $1.96 (adjusted).

• Ended 2024 with $10.3B in liquidity and net debt of $31.6B, lowest since 2015.

Outlook and guidance

• 2025 capacity expected to be up low single digits year-over-year; Q1 capacity flat to down 2%.

• 2025 revenue growth forecasted at 4.5%-7.5% versus 2024, with Q1 revenue up 3%-5%.

• Full-year 2025 adjusted EPS guidance of $1.70-$2.70; Q1 2025 adjusted EPS expected to be $(0.20)-$(0.40).

• Non-fuel unit costs expected up high single digits in Q1, moderating to low single digits by year-end.

• Forecasting over $2B in free cash flow for 2025.