American Airlines Group

American Airlines Group (AAL) Q1 2025 Earnings

Reported Apr 24, 2025 at 7:00 AM ET · SEC Source

Q1 25 EPS

$-0.59

BEAT +12.12%

Est. $-0.67

Q1 25 Revenue

$12.55B

MISS 0.06%

Est. $12.56B

vs S&P Since Q1 25

+52.4%

BEATING MARKET

AAL +88.6% vs S&P +36.2%

Market Reaction

Did AAL Beat Earnings? Q1 2025 Results

American Airlines navigated a difficult start to 2025, posting an adjusted loss of $0.59 per share in Q1, clearing the consensus estimate of $0.67 by 11.94% even as the carrier absorbed significant headwinds that kept the quarter firmly in the red. R… Read more American Airlines navigated a difficult start to 2025, posting an adjusted loss of $0.59 per share in Q1, clearing the consensus estimate of $0.67 by 11.94% even as the carrier absorbed significant headwinds that kept the quarter firmly in the red. Revenue of $12.55 billion was essentially flat year over year, slipping just 0.1%, with international unit revenue strength and loyalty program momentum offset by softening domestic leisure demand and an estimated $200 million revenue hit tied to the American Eagle Flight 5342 accident. The Pacific region stood out as a bright spot, with passenger revenue surging 30.2% on 24.1% higher capacity, while labor cost escalation pushed CASM excluding fuel and special items up 7.8% year over year. On the balance sheet, American generated $1.71 billion in free cash flow and trimmed total debt by $1.2 billion to $37.42 billion, keeping its sub-$35 billion debt target by year-end 2027 intact. For Q2, management guided adjusted EPS of $0.50 to $1.00 but withdrew its full-year outlook, citing economic uncertainty and tariff-related pressure on travel demand.

Key Takeaways

  • International unit revenue up 2.9% YoY driven by strong Pacific performance
  • Continued growth in premium and loyalty revenue
  • Co-branded credit card spending up 8% YoY
  • AAdvantage enrollments up 6% YoY
  • Fuel costs declined 13.2% YoY
  • Free cash flow of $1.7 billion enabling $1.2 billion in debt reduction
  • Continued restoration of indirect channel revenue
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AAL YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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AAL Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26
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AAL Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“The actions American has taken over the past several years to refresh our fleet, manage costs and strengthen our balance sheet position us well for the uncertainty our industry is facing. The resiliency of the American Airlines team, combined with the investments we have made to differentiate our network, product and customer experience, give us extreme confidence in our ability to navigate the current environment and deliver strong results for the long term.”

— Robert Isom, Q1 2025 Earnings Press Release