This article is based on an official press release from American Airlines.

American Airlines Reports Record 2025 Revenue, Forecasts Strong 2026 Rebound

American Airlines Group Inc. (NASDAQ: AAL) released its fourth-quarter and full-year 2025 financial results today, reporting record revenue figures despite facing significant external operational challenges. According to the official press release, the carrier achieved record fourth-quarter revenue of $14.0 billion and record full-year revenue of $54.6 billion.

While top-line growth remained positive, the airline navigated a complex operating environment, including a costly government shutdown in the fourth quarter and severe weather disruptions at the start of 2026. Despite these headwinds, American Airlines has issued a bullish outlook for the remainder of 2026, projecting a significant increase in profitability and free cash flow generation.

Financial Performance Overview

The data released by American Airlines highlights a year of revenue growth offset by operational costs and external disruptions. For the full year of 2025, the company reported a GAAP net income of $111 million, or $0.17 per share. On an adjusted basis, excluding net special items, the full-year net income was $237 million, or $0.36 per share.

Fourth-Quarter 2025 Results

In the fourth quarter alone, American generated $14.0 billion in revenue, marking a 2.5% increase year-over-year. However, the airline reported a GAAP net income of just $99 million ($0.15 per share). Adjusted net income for the quarter stood at $106 million ($0.16 per share).

According to the financial report, the company successfully reduced its total debt by approximately $2.1 billion throughout 2025, bringing its total debt load to approximately $36.5 billion by year-end.

Operational Headwinds and External Impacts

American Airlines management detailed two specific events that materially impacted financial results for late 2025 and early 2026: a government shutdown and “Winter Storm Fern.”

Government Shutdown Impact

The company disclosed that the government shutdown in late 2025 negatively impacted fourth-quarter revenue by approximately $325 million. The report notes that this event reduced domestic passenger demand and created operational friction. Management stated that without this disruption, domestic unit revenue would have been positive for the quarter.

Winter Storm Fern

Looking at the start of the current year, the airline faced what management described as the “largest weather-related operational disruption in American’s history.” Winter Storm Fern resulted in more than 9,000 flight cancellations in January 2026. The company estimates this will reduce first-quarter 2026 revenue by $150 million to $200 million.

2026 Guidance and Strategic Outlook

Despite the slow start to the first quarter due to weather, American Airlines expressed confidence in a strong financial rebound for the full year of 2026. The company’s guidance suggests a sharp pivot toward higher profitability.

• Adjusted EPS: The airline forecasts full-year 2026 adjusted earnings per share to range between $1.70 and $2.70.
• Free Cash Flow: American expects to generate more than $2 billion in free cash flow.
• Debt Reduction: The carrier is on track to reduce total debt to below $35 billion by the end of 2026.

For the first quarter of 2026, the airline expects revenue to grow between 7% and 10% year-over-year, though it anticipates an adjusted loss per share of ($0.10) to ($0.50) largely due to the impact of Winter Storm Fern.

“American Airlines is positioned for significant upside in 2026 and beyond. We have built a strong foundation, and we look forward to taking advantage of the investments we have made in our customer experience, network, fleet, partnerships, and loyalty program.”

, Robert Isom, CEO of American Airlines

AirPro News Analysis

While American Airlines has achieved record revenue, its profit margins remain thin compared to its primary legacy competitors. The reported full-year GAAP net income of $111 million stands in stark contrast to industry peers; for context, Delta Air Lines reported approximately $5 billion in net income for 2025, and United Airlines reported approximately $3.4 billion. American’s aggressive 2026 guidance, targeting an EPS jump from $0.36 (adjusted) in 2025 to a midpoint of $2.20 in 2026, indicates that management is under significant pressure to close this profitability gap through improved operational reliability and premium revenue initiatives.

Frequently Asked Questions

What was American Airlines’ revenue for 2025?

The airline reported a record full-year revenue of $54.6 billion.

How much debt did American Airlines pay off in 2025?

The company reduced its total debt by $2.1 billion in 2025.

Why did American Airlines miss Q4 expectations?

The company attributed the shortfall largely to a government shutdown, which impacted revenue by approximately $325 million.

Sources

• American Airlines