Companies /Industrials

American Airlines Group Inc

NASDAQ: AAL Airlines
$13.13
▲ $0.16 (+1.23%) today
Markets closed · 3:22am ET

Q3 2025 Earnings

Reported Oct 23, 2025, 7:00am ET · SEC source
$-0.17
Beat +38.20%
EPS · est. $-0.28
$13.7B
Beat +0.48%
Revenue · est. $13.6B
+3.0%
Beating market
AAL vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+4%+8%Oct 23Oct 24report 7:00am ETearnings+1.5%+10.2%
0+4%+8%Oct 23Oct 24earnings+1.5%+10.2%
AAL +10.2%S&P 500 +1.5%
0+4%+8%Oct 23Oct 24report 7:00am ETearnings+2.2%+10.2%
0+4%+8%Oct 23Oct 24earnings+2.2%+10.2%
AAL +10.2%NASDAQ +2.2%
−5%0+5%+10%Oct 22Oct 31report 7:00am ETearnings+2.8%+1.9%
−5%0+5%+10%Oct 22Oct 31earnings+2.8%+1.9%
AAL +1.9%S&P 500 +2.8%
−5%0+5%+10%Oct 22Oct 31report 7:00am ETearnings+5.1%+1.9%
−5%0+5%+10%Oct 22Oct 31earnings+5.1%+1.9%
AAL +1.9%NASDAQ +5.1%
+5.62%
Day of report
+7.91%
Next session
+0.08%
One week
+2.58%
30 days

S&P 500 over the same 30 days: −0.45%.

Did AAL Beat Earnings? Q3 2025 Results

American Airlines delivered a stronger-than-expected third quarter, posting a loss of $0.17 per diluted share against a consensus estimate of $0.28, a 39.29% beat that sent <a href="https://247wallst.com/investing/2025/10/23/earnings-why-american-airlines-is-up-4-5/">shares notably higher</a> following the report. Revenue reached a record $13.69 billion for any third quarter, up 0.3% year over year, with unit revenues improving sequentially through the period and September turning positive, despite significant weather disruptions and an FAA technology outage that tested operations during the month. The narrower-than-expected loss was supported by a 5.5% decline in average fuel costs to $2.37 per gallon, which helped offset a 3.9% rise in non-fuel unit costs driven largely by higher wages and regional expenses. The AAdvantage loyalty program added momentum, with active accounts up 7% and co-branded credit card spending rising 9%. Looking ahead, American guided for Q4 adjusted EPS of $0.45 to $0.75 and full-year adjusted EPS of $0.65 to $0.95, with free cash flow expected to exceed $1 billion for the full year.

Key Takeaways
  • Record third-quarter revenue of $13.7 billion
  • Sequential unit revenue improvement throughout the quarter with September producing positive unit revenue growth
  • Premium unit revenue growth outperforming main cabin
  • AAdvantage active accounts up 7% year over year
  • Co-branded credit card spending up 9% year over year
  • Lower fuel costs with average fuel price down 5.5% year over year to $2.37 per gallon
  • Total debt reduced by $1.2 billion in the quarter

“The American Airlines team is delivering on our commitments. We've built a strong foundation, with best-in class cost management and a focus on strengthening the balance sheet. Looking forward, I'm confident that continued investments in our network, customer experience and loyalty program will position us well to drive revenue growth and shareholder value in 2026 and beyond.”

American Airlines Group CEO, on the earnings call

Forward Guidance & Outlook

American Airlines expects Q4 2025 adjusted EPS of $0.45 to $0.75 and full-year 2025 adjusted EPS of $0.65 to $0.95. Q4 capacity is expected to increase approximately 3.0% to 5.0% year over year, with total revenue also up approximately 3.0% to 5.0%. Q4 CASM excluding fuel and special items is expected to rise approximately 2.5% to 4.5%, with adjusted operating margin of approximately 5.0% to 7.0%. Q4 adjusted nonoperating expense is expected to be approximately $330 million. Full-year free cash flow is expected to exceed $1 billion. The company expects a provision for income taxes at an estimated effective tax rate of approximately 25% for Q4 and approximately 27% for the full year, which is expected to be substantially non-cash. Total capital expenditures are projected at approximately $3.8 billion for 2025 and $4.0 to $4.5 billion for 2026. The company remains on track to reduce total debt below $35 billion by year-end 2027.

AAL YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$4.0B$8.0B$12.0B$13.6B$13.7BRevenue$643.1M$151.0MOperating Income$-92,315,167$-114,000,000Net Income
$0$4.0B$8.0B$12.0BRevenueOperating IncomeNet Income

AAL Revenue by Segment

Passenger Revenue$12.5B−0.4%
Other Revenue$1.0B+9.4%
Cargo$212.0M+5.0%

AAL Revenue by Geography

North America
United States$8.7B+0.5%
Europe$2.1B−0.1%
Atlantic
Latin America$1.3B−6.5%
Asia Pacific$299.0M+0.1%

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