American Airlines Reports Four Hundred Seventy Three Million Dollars Loss for Q1 2025 as Strong International Revenue and AAdvantage Enrollment Soar Amid Economic Challenges

Published on April 24, 2025

American Airlines reports a $473 million loss for Q1 2025, despite strong international revenue and AAdvantage growth amid economic challenges.

American Airlines Group Inc. (NASDAQ: AAL) has announced its financial results for the first quarter of 2025, highlighting key metrics as follows:

• First-quarter revenue: $12.6 billion
• GAAP net loss: $473 million, or $0.72 per diluted share
• Excluding special items, net loss: $386 million, or $0.59 per diluted share
• Total available liquidity at quarter-end: $10.8 billion

Revenue Overview

American generated $12.6 billion in revenue during the first quarter. The company experienced a 0.7% increase in total unit revenue compared to the same period in 2024, driven by strong international unit revenue, which rose by 2.9% despite a 0.8% decline in capacity. This growth was also bolstered by premium services and loyalty revenue. Although American continued to recover revenue in indirect channels, economic uncertainties and the tragic accident involving American Eagle Flight 5342 dampened performance.

AAdvantage® and Citi Collaboration

American Airlines and Citi are progressing toward the launch of their expanded partnership, set to begin in 2026. AAdvantage® membership saw a 6% increase in enrollments year-over-year, while spending on co-branded credit cards rose by 8%, reinforcing the importance of the loyalty program for the airline.

Enhancing Customer Experience

With an updated commercial strategy and a dedicated Customer Experience organization, American aims to drive growth through improved customer satisfaction. Starting in January 2026, AAdvantage® members will enjoy complimentary high-speed satellite Wi-Fi, sponsored by AT&T, making American Airlines the leader in inflight connectivity.

Operational Resilience

American demonstrated operational strength by recovering swiftly from disruptions during the first quarter. The airline is committed to continuing investments in technology, its workforce, and operations to enhance reliability.

Financial Performance

The airline reported a GAAP operating margin of -2.2% for the first quarter. After adjusting for special items, the adjusted operating margin was -1.6%.

Balance Sheet and Liquidity

In Q1, American generated $1.7 billion in free cash flow, further improving its financial position. The airline reduced total debt by $1.2 billion, bringing the total debt reduction since its 2021 peak to $16.6 billion. The company remains on track to lower its debt to under $35 billion by 2027. It ended the quarter with $10.8 billion in liquidity, comprising cash, short-term investments, and undrawn capacity from credit facilities.

Future Outlook

Given current demand trends and fuel price forecasts, American expects second-quarter 2025 adjusted earnings per diluted share to fall between $0.50 and $1.00. The airline has withdrawn its full-year guidance for now and plans to update it as economic conditions become clearer.

Conference Call Details

A live audio webcast of the financial results conference call will take place today at 7:30 a.m. CT, available on a listen-only basis at aa.com/investorrelations. The call’s archive will be available through May 24.

For further details, including a detailed reconciliation of GAAP to non-GAAP financial information, please refer to the company’s investor update, filed with the SEC on Form 8-K and available at aa.com/investorrelations.