American Airlines (AAL) Q4 2025 earnings

American Airlines It predicted Tuesday that its focus on premiums “will start to produce results in 2026” as the carrier races to catch up with its more profitable rivals and capitalize on strong demand from high-spending customers.

The Fort Worth-based airline expected it would post a roughly $2 improvement in adjusted earnings per share at the midpoint of last year.

American also expects to generate 7% to 10% additional revenue in the first three months of 2026 compared to 2025.

American stock rose nearly 4% in premarket trading.

Here’s how Americans fared in the fourth quarter compared to Wall Street estimates compiled by LSEG:

• EPS: 16 cents were revised versus 34 cents expected
• profit: $14 billion versus $14.03 billion expected

American achieved net income of $99 million, or 15 cents per share, on revenue of $14 billion. Revenues increased by 2.5% over last year. Excluding net special items, the company reported adjusted earnings per share of 16 cents.

“American Airlines is positioned for significant upside in 2026 and beyond,” CEO Robert Isom said in a statement. “We have built a strong foundation, and we look forward to building on the investments we have made in customer experience, network, fleet, partnerships and loyalty program.”

The airline also said the government shutdown negatively impacted fourth-quarter revenue by about $325 million.

“The fourth quarter hit us hard,” Isom said on CNBC’s “Squawk Box” Tuesday morning. “The government shutdown hurt us, it affected us the most. … The good news in that regard is that once the government shutdown ended, we saw bookings come back.”

American said this weekend’s winter storm, which marked Sunday as the largest day of flight cancellations since the pandemic struck in early 2020, resulted in a 1.5 percentage point decline in the company’s guidance for the first quarter of 2026, along with an estimated negative impact on revenue of $150 million to $200 million. American said Monday that five of its nine major airports were disrupted by the storm, including its largest hub at Dallas-Fort Worth International Airport.

The airline said passenger unit revenue fell 2.5% year-on-year, although that figure would have been positive were it not for the impact of the government lockdown. Premium product offerings continued to perform well, with year-over-year premium unit revenues outpacing the main compartment during the fourth quarter.

“I like where we’re headed,” Isom told CNBC. “Featured traffic will remain strong, and our product will once again have high frequency.”

American is revamping its fleet, lounges and food and beverage offerings to attract customers willing to spend more on premium tickets and co-branded credit cards. Competitors Delta Airlines and United Airlines However, it is at the forefront, accounting for almost all of the industry’s profits.