Premium Travel and Fleet Expansion Lead the Way: US Airline Reports Record Revenue of $14 Billion

The world's largest airline, American Airlines, reported its financial results for the fourth quarter and full year 2025 yesterday (January 27, 2026). Highlights include record revenue of $14 billion in the fourth quarter and $54.6 billion for the year. According to the company, the government shutdown of airports cost the company about $325 million in fourth-quarter revenue.

Net income was $99 million in the fourth quarter and $111 million for the year, or $0.15 and $0.17 per diluted share, respectively. Excluding special items, net income was $106 million in the fourth quarter and $237 million for the year, or $0.16 and $0.36 per diluted share. During 2025, the company reduced total debt by $2.1 billion.

Adjusted earnings per share for 2026 are expected to be $1.70–$2.70, and the company expects to generate free cash flow of more than $2 billion.

American Airlines Boeing 777 wide-body aircraft. Photo: American Airlines

Revenue Performance and Outlook: Despite the negative impact of the government shutdown, fourth-quarter revenue grew to record levels, and passenger revenue performance soared across most international units. The company's premium products continue to lead the way, with unit revenues exceeding core division revenues. Since the beginning of 2026, double-digit bookings have been up, primarily in premium seats and business channels, and first-quarter revenue growth is expected to be 7%-10% year-over-year.

Improving the Passenger Experience: The airline has expanded the travel experience with the launch of Flagship Suite, alongside free high-speed internet and an upgraded mobile app for real-time self-service. In addition, the company is focusing on improving flight punctuality and revamping its time-banking planning at Dallas-Fort Worth (DFW) Airport to ensure more accurate departure and arrival times.

Network and Fleet Strengthening: American continues to expand its network with eight hubs in the United States, alongside international partnerships. Investments in Terminal F at DFW and new facilities on Boeing 777-300ER, 777-200ER, Airbus A319 and A320 are expected to increase premium seat offerings in the coming years.