Companies /Industrials

American Airlines Group Inc

NASDAQ: AAL Airlines
$13.13
▲ $0.16 (+1.23%) today
Markets closed · 5:12pm ET

Q2 2025 Earnings

Reported Jul 24, 2025, 7:00am ET · SEC source
$0.95
Beat +22.98%
EPS · est. $0.77
$14.4B
Beat +0.69%
Revenue · est. $14.3B
+12.2%
Beating market
AAL vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0+4%Jul 24Jul 25report 7:00am ETearnings+0.4%−5.5%
−8%−4%0+4%Jul 24Jul 25earnings+0.4%−5.5%
AAL −5.5%S&P 500 +0.4%
−8%−4%0+4%Jul 24Jul 25report 7:00am ETearnings+0.3%−5.5%
−8%−4%0+4%Jul 24Jul 25earnings+0.3%−5.5%
AAL −5.5%NASDAQ +0.3%
−4%0+4%Jul 23Aug 1report 7:00am ETearnings−1.4%−5.8%
−4%0+4%Jul 23Aug 1earnings−1.4%−5.8%
AAL −5.8%S&P 500 −1.4%
−4%0+4%Jul 23Aug 1report 7:00am ETearnings−1.3%−5.8%
−4%0+4%Jul 23Aug 1earnings−1.3%−5.8%
AAL −5.8%NASDAQ −1.3%
−9.62%
Day of report
+0.35%
Next session
+0.26%
One week
+13.44%
30 days

S&P 500 over the same 30 days: +1.27%.

Did AAL Beat Earnings? Q2 2025 Results

American Airlines delivered a stronger-than-expected second quarter, posting adjusted EPS of $0.95 against a consensus estimate of $0.78, a beat of 21.79%, even as the results reflected year-over-year pressure. Record quarterly revenue of $14.39 billion, up 0.4% from a year ago, was driven in part by a 5% surge in Atlantic passenger unit revenue and robust premium cabin demand, while GAAP net income slipped to $599 million from $717 million in Q2 2024. The key driver behind the earnings beat was the faster-than-expected recovery of indirect channel revenue, which management now expects to reach historical share levels by year-end. Cost headwinds, with total operating expenses climbing 2.4% to $13.26 billion, were partially offset by fuel costs falling 13% to $2.66 billion. The optimism, however, fades heading into the back half of the year; Q3 guidance calls for an adjusted loss of $0.10 to $0.60 per share, and full-year adjusted EPS is projected between a loss of $0.20 and a gain of $0.80, a cautious outlook shared by <a href="https://247wallst.com/investing/2025/07/16/live-will-united-airlines-nyse-ual-soar-after-earnings-tonight/">peers across the industry</a> as domestic demand softness and weather disruptions weigh on the sector.

Key Takeaways
  • Record quarterly revenue of $14.4 billion driven by indirect channel revenue recovery ahead of forecast
  • Atlantic passenger unit revenue up 5% year over year with all international entities delivering positive unit revenue growth
  • Industry-leading passenger unit revenue YoY improvement for fourth consecutive quarter
  • Co-branded credit card spending increased 6% year over year
  • Active AAdvantage accounts up 7% year over year
  • AAdvantage members contributed approximately 77% of premium revenue year-to-date
  • Fuel cost tailwind with average fuel price down 15.3% to $2.29 per gallon
  • Strong premium cabin demand particularly on long-haul international destinations

“American delivered record revenue in an evolving demand environment in the second quarter thanks to the hard work and dedication of our team. We remain confident that the actions we have taken over the past several years to refresh our fleet, manage costs and strengthen our balance sheet position us well for the future. The investments we have made toward achieving our revenue potential, including bolstering our network, customer experience and loyalty program, are paying off, and the team remains focused on delivering on our long-term strategy.”

American Airlines Group CEO, on the earnings call

Forward Guidance & Outlook

For Q3 2025, American expects capacity (ASMs) up approximately 2-3% YoY, total revenue down approximately 2% to up 1% YoY, CASM excluding fuel and special items up approximately 2.5-4.5% YoY, adjusted operating margin of approximately -1% to 2%, and an adjusted loss per diluted share of ($0.10) to ($0.60). For full-year 2025, the company expects adjusted earnings (loss) per diluted share of ($0.20) to $0.80, with a midpoint of $0.30. The top end of the range is achievable if domestic demand continues to strengthen, while the bottom end would only apply in the event of macro weaknesses not currently seen. The company expects positive free cash flow for the full year and anticipates a full-year tax rate of approximately 35%. The Q3 tax benefit is expected at approximately 20%, substantially non-cash.

AAL YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$4.0B$8.0B$12.0B$14.3B$14.4BRevenue$1.4B$1.1BOperating Income$717.0M$599.0MNet Income
$0$4.0B$8.0B$12.0BRevenueOperating IncomeNet Income

AAL Revenue by Segment

Passenger Revenue$13.1B−0.6%
Other Revenue$1.1B+13.0%
Cargo$211.0M+8.2%

AAL Revenue by Geography

North America
United States$9.2B−2.0%
Europe
Atlantic$2.1B+3.3%
Latin America$1.6B−0.8%
Asia Pacific$328.0M+17.5%

Figures from SEC filings and company reports. Not investment advice.