American Airlines’ profits fell below estimates last quarter amid the impact of the United States’ government shutdown, with shares dropping 7%.
Its earnings per share were US$0.16, down from $0.86 one year ago and under LSEG estimates of $0.34. Revenue was a record $14.00 billion, up 2.5% but below estimates of $14.03 billion.
“American Airlines is positioned for significant upside in 2026 and beyond,” said CEO Robert Isom.
“We have built a strong foundation, and we look forward to taking advantage of the investments we have made in our customer experience, network, fleet, partnerships and loyalty program. The strategy we have in place will put American in the right position as we celebrate our centennial and embark on our next 100 years as a premium global airline.”
The company’s revenue received a $325 million hit from the 43-day government shutdown in October and November. Domestic passenger revenue dropped 2.5% during the quarter due to the shutdown, with American saying it would have seen positive growth otherwise.
Total passenger revenue rose 2.1% to $12.66 billion last quarter. Cargo revenue was up 2.8% to $226 million, and other revenue increased by 7.4% to $1.12 billion.
Operating income plummeted by 60.2% to $451 million. Operating expenses climbed 8.2%.
American lowered its debt by $2.1 billion across 2025, and finished the quarter with $36.51 billion in total debt and $30.67 billion in net debt.
The company has cut its capacity guidance for 2026’s first quarter by 1.5% due to this week’s winter storm, and expects a revenue impact of $150-200 million following more than 9,000 flight cancellations. It projects revenue will rise by 7-10%, with a loss per share of $0.10-0.50.
American Airlines (NASDAQ: AAL) shares fell 7% to close at $13.55, but climbed 0.3% after-hours. Its market capitalisation is $8.94 billion.
