American Airlines

American Airlines’ road to recovery: Three takeaways from its Q4 2025 results

American Airlines is hoping that its profitability will recover significantly in 2026.

Photo: American Airlines

American Airlines has published its Q4 2025 financial results, being the last airline among the top three US major airlines to do so. The company ended the quarter and the full-year with net profit down substantially vs Q4 2024 and 2024.

In Q4 2025, American Airlines’ revenue was $13.9 billion, up 2.5% year-on-year (YoY), while operating expenses grew to $13.5 billion. Following interest expense of more than $423 million and tax-related expenses, the airline ended the quarter with a net profit of $99 million, a contraction of 83.2% YoY.

Full-year and quarterly TRASM down

American Airlines' quarterly and full-year total revenue per available seat mile (TRASM) was down 1.6% and 1.4%, respectively. United Airlines experienced similar TRASM drops, with the carrier’s quarterly and full-year TRASM being 1.6% and 2.5% lower YoY. In contrast, TRASM at Delta Air Lines came in 2% higher YoY (non-adjusted) in Q4 2025 and 1% lower for the full year.

At the same time, American Airlines’ cost per available seat mile (CASM) was 3.8% higher during the quarter. At Delta Air Lines and United Airlines, CASM was up 3% and 0.3% lower in Q4 2025.

American Airlines’ total operating revenues of $13.9 billion were overshadowed by Delta Air Lines’ $16 billion and United Airlines' $15.3 billion, even if Delta Air Lines offered fewer ASMs during the quarter.

Full-year and quarterly profit down YoY

In 2025, the airline’s operating profit was $1.4 billion, with cost inflation outpacing revenue growth.

While full-year fuel costs were down 6.1% YoY, they could not offset growing salaries (up 9.6%), regional expenses (8.4%), and other costs.

Full-year net profit was $111 million, as its interest expense of $1.7 billion continued to weigh down its performance. According to American Airlines, at the end of the year, its net debt stood at $30.6 billion, compared to Delta Air Lines’ and United Airlines’ net debt of $14.3 billion and $19.8 billion, respectively (both figures adjusted).

“At the midpoint of the company’s adjusted earnings per diluted share and capital expenditures guide, the company expects to achieve its total debt goal of less than $35 billion in 2026, a year ahead of schedule.”

Significant EPS improvement expected in 2026

American Airlines expects that its adjusted diluted EPS will be significantly higher in 2026.

The airline issued guidance that it expects adjusted diluted EPS to fall between $1.70 and $2.70, up from $0.17 in 2025, with free cash flow (FCF) of more than $2 billion. The company did not provide any other full-year guidance, yet detailed that its Q1 adjusted diluted EPS would be between -$0.50 and -$0.10, meaning American Airlines should be loss-making during the first quarter of 2026.

In the earnings release, Robert Isom, the Chief Executive Officer (CEO) of American Airlines, stated that the airline is “positioned for significant upside in 2026 and beyond” with a strong foundation.

“[…] we look forward to taking advantage of the investments we have made in our customer experience, network, fleet, partnerships, and loyalty program.”