American Airlines Group (AAL) Q4 2025 earnings summary

Executive summary

• Achieved record fourth-quarter revenue of $14.0 billion and full-year revenue of $54.6 billion for 2025, despite a $325 million negative impact from a government shutdown and major operational disruption from Winter Storm Fern.

• Fourth-quarter net earnings per diluted share were $0.15 GAAP and $0.16 excluding net special items; full-year net earnings per diluted share were $0.17 GAAP and $0.36 excluding net special items, both below guidance.

• Reduced total debt by $2.1 billion in 2025 to $36.5 billion, with a target to fall below $35 billion by end of 2026, a year ahead of schedule.

• Premium product investments, loyalty program growth, and partnerships are expected to drive revenue and margin improvements in 2026.

• Investments in customer experience, network, fleet, and operational reliability position the company for significant upside in 2026.

Financial highlights

• Q4 2025 adjusted EPS was $0.16; full-year adjusted EPS was $0.36, both down sharply from 2024.

• Q4 operating income was $451 million, down over 57% year-over-year; full-year operating income was $1,467 million, down 50%.

• Free cash flow for 2025 was negative $83 million, reflecting significant investing activities.

• Premium unit revenue outpaced main cabin by seven points in Q4; managed corporate revenue rose 12% year-over-year.

• Ended 2025 with $9.2 billion in liquidity and $36.5 billion in total debt.

Outlook and guidance

• Q1 2026 capacity projected up 3%-5% year-over-year, with a 1.5-point negative impact from Winter Storm Fern.

• Q1 2026 revenue expected to rise 7%-10% year-over-year, with a $150-$200 million revenue impact from the storm.

• Q1 adjusted loss per share expected between $0.10 and $0.50; full-year adjusted EPS guidance is $1.70-$2.70.

• 2026 capital expenditures projected at $4-$4.5 billion; free cash flow expected to exceed $2 billion.

• Expects total debt below $35 billion in 2026, a year ahead of plan.