American Airlines projects a high-flying 2026 after closing 2025 with record revenues of $54.6 billion
American Airlines Group announced its financial results for the fourth quarter and the full year 2025, confirming a year-end marked by record revenue, financial discipline, and a strategy clearly focused on premium products and customer loyalty.
The company achieved historic quarterly revenue of $14 billion and $54.6 billion for the entire year, the highest absolute figures for the airline. These results were achieved despite an estimated negative impact of $325 million from the U.S. government shutdown, which primarily affected the domestic business during the fourth quarter.
In terms of profitability, American reported a net profit of $99 million in the fourth quarter and $111 million for the full year. Excluding special items, adjusted profit rose to $106 million for the quarter and $237 million for the year, with an adjusted EPS of $0.36 for the year.
Revenue: Premium Products Make the Difference
Commercial performance was clearly driven by the higher-value segment. Premium unit revenues outperformed main cabin products, confirming the effectiveness of the differentiation strategy. In the domestic business, unit revenue per passenger fell 2.5% year-over-year, although the company clarifies that, without the effect of the government shutdown, the result would have been positive.
Internationally, performance improved sequentially compared to the third quarter in all regions. Furthermore, after a temporary weakness in bookings towards the end of the fourth quarter, January showed a significant recovery, with system revenue growing at a double-digit year-over-year rate in the first three weeks of 2026. Based on this data, American projects total revenue growth of between 7% and 10% for the first quarter of this year, along with positive unit revenues in both the domestic market and system-wide.
Customer Experience: A Comprehensive Transformation
American is executing a deep modernization of the travel experience. The Flagship Suite®, introduced in June 2025, has positioned itself as a new standard of luxury on long-haul flights and leads satisfaction ratings since its entry into service. This is complemented by the industry’s largest network of premium lounges, with continuous investments in Flagship® Lounges and Admirals Club®.
Onboard, the airline began the rollout of free high-speed satellite Wi-Fi, sponsored by AT&T, for AAdvantage® members. Simultaneously, enhancements to the mobile app focused on passenger self-service, especially during irregular operations, were announced.
→ American Airlines Expands Network with New Routes from Chicago and Los Angeles
From an operational standpoint, the fourth quarter was marked by the government shutdown and severe winter storms in the Northeast and Chicago, although the company highlights the resilience of its operations. A key initiative is the reconfiguration of the Dallas/Fort Worth (DFW) hub, which will transition to a 13-bank connecting structure, aiming to improve on-time performance, reduce delays, and offer greater predictability for the customer.
Network and Fleet: Scale, Connectivity, and More Premium Seats
American emphasizes that it operates the strongest network in the United States, with eight hubs in the ten largest metropolitan areas, reinforced by the global reach of its partners and the oneworld alliance. The airline anticipates further expansion of its joint ventures and strategic agreements.
A central project is Terminal F at DFW, where American increased its investment with the goal of making the airport the world’s largest hub operated by a single airline. Regarding the fleet, the company announced retrofit plans for the Boeing 777-300ER, 777-200ER, Airbus A319, and A320, complemented by the addition of Boeing 787-9 and Airbus A321XLR aircraft, which will drive the growth of premium seating throughout the decade.
Loyalty and Alliances: AAdvantage as a Value Engine
The AAdvantage® program once again proved to be a strategic pillar. In 2025, enrollments grew 7% year-over-year, reaching the highest annual volume in its history. Spending on co-branded credit cards increased by 8%, and during the fourth quarter, the transition of card acquisition channels to Citi was completed as part of an exclusive and expanded agreement that took effect at the beginning of 2026.
Balance Sheet, Liquidity, and Financial Discipline
On the financial front, American reduced its total debt by $2.1 billion during 2025, ending the year with $36.5 billion in total debt and $30.7 billion in net debt. Available liquidity reached $9.2 billion, including cash, short-term investments, and unused lines of credit.
Based on current adjusted profit and capex guidance, the company expects to reduce total debt below $35 billion in 2026, one year ahead of schedule.
2026 Outlook: Growth with Operational Risks on the Radar
For 2026, American projects adjusted EPS between $1.70 and $2.70 and free cash flow exceeding $2 billion. However, first-quarter guidance incorporates the impact of Winter Storm Fern, the most disruptive weather event in the airline’s history, with over 9,000 flights canceled. The estimated effect includes a capacity reduction of 1.5 points, a negative revenue impact of $150 to 200 million, and a similar increase in CASM (Cost per Available Seat Mile) excluding fuel.
According to its CEO, Robert Isom, the company “is positioned for significant growth in 2026 and beyond,” supported by investments in customer experience, network, fleet, alliances, and loyalty, just as it prepares to celebrate its centennial.
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