American Airlines Group Inc. (NASDAQ: AAL) has reported its fourth-quarter and full-year 2025 financial results, revealing a record fourth-quarter revenue of $14.0 billion and record full-year revenue of $54.6 billion. The company experienced a negative impact on revenue in the fourth quarter due to the government shutdown, amounting to approximately $325 million. Despite this, it reported fourth-quarter and full-year GAAP net income of $99 million and $111 million, or $0.15 and $0.17 per diluted share, respectively. However, excluding net special items, the company reported fourth-quarter and full-year net income of $106 million and $237 million, or $0.16 and $0.36 per diluted share, respectively.
American Airlines reduced its total debt by $2.1 billion in 2025 and expects its full-year 2026 adjusted earnings per diluted share to be between $1.70 and $2.70. Furthermore, the company anticipates free cash flow of more than $2 billion in 2026.
In terms of revenue performance, American Airlines delivered a record fourth-quarter revenue of $14.0 billion, with year-over-year passenger unit revenue performance improving sequentially versus the third quarter in each of the international entities. Despite the negative impact from the government shutdown, the company experienced a double-digit year-over-year increase in revenue intakes for the first three weeks of 2026, driven by strong performance in premium cabins and corporate channels. Bookings strengthened significantly in January, and the company expects solidly positive first-quarter unit revenue for the domestic entity and the system, with total revenue growing 7.0%-10.0%.
The company is committed to delivering on its revenue potential through four strategic pillars: delivering a consistent, elevated customer experience; maximizing the power of its network and fleet; building partnerships that deepen loyalty and lifetime value; and advancing sales, distribution, and revenue management efforts.
On the balance sheet and liquidity front, the company reduced its total debt by $2.1 billion in 2025, ending the year with $36.5 billion of total debt and $30.7 billion of net debt. American Airlines expects to achieve its total debt goal of less than $35 billion in 2026, a year ahead of schedule. The company ended the year with $9.2 billion of total available liquidity, comprised of cash and short-term investments plus undrawn capacity under revolving credit and other facilities.
The company also provided financial guidance for the full year 2026 and the first quarter of 2026. For the full year 2026, it expects adjusted earnings per diluted share to be between $1.70 and $2.70, and free cash flow to be greater than $2 billion. In the first quarter of 2026, available seat miles (ASMs) are expected to increase by 3.0%-5.0%, total revenue to increase by 7.0%-10.0%, and cost per available seat mile (CASM) excluding fuel, profit sharing, and net special items to increase by 3.0%-5.0%.
American Airlines is also focused on enhancing its customer experience, network, fleet, partnerships, and loyalty program to position itself for significant upside in 2026 and beyond. As a result of these announcements, the company's shares have moved -2.16% on the market, and are now trading at a price of $15.37. Check out the company's full 8-K submission here.
