Financial Data and Key Metrics Changes - American Airlines reported an adjusted pretax profit of $869 million for Q2 2025, with earnings per share of $0.95, which is at the high end of the guidance provided earlier [7][21] - The company achieved record revenue of $14.4 billion in Q2 2025, reflecting a year-over-year increase of 0.4% [9][21] - The operating margin for Q2 was approximately 8%, with unit costs (excluding fuel and net special items) up 3.4% year-over-year [21][22] - Free cash flow for the quarter was $791 million, contributing to a total of $2.5 billion in the first half of the year [23][24] Business Line Data and Key Metrics Changes - Long-haul international PRASM increased by 5% for Atlantic routes and approximately 1% for Pacific routes, driven by strong demand in premium cabins [10] - Domestic unit revenue decreased by approximately 6% year-over-year, with expectations for improvement in the latter part of Q3 [11][26] - Managed business revenue grew by 10% year-over-year, outperforming broader industry growth [12] Market Data and Key Metrics Changes - The company experienced a 36% increase in disruptive operational events compared to the previous year, primarily due to significant storm activity [18][19] - Domestic capacity is expected to increase by approximately 5% during the July peak, but will slow to about 2% in August and decrease by 1% in September [26] Company Strategy and Development Direction - The company is focused on enhancing customer experience, operational excellence, and driving efficiencies throughout the airline [8][9] - American Airlines plans to expand its premium seating and improve its network, particularly in strategic hubs like Chicago, New York, and Philadelphia [14][15] - The company aims to restore its historical share of indirect channel revenue by the end of 2025, which is projected to represent $1.5 billion in revenue [62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of domestic demand in the latter half of the year, despite challenges faced in the first half [28][29] - The company anticipates sequential improvement in revenue performance each month in Q3, with July expected to be the low point [26][42] - Management highlighted the resilience of the business and the team's ability to navigate a challenging operating environment [28][29] Other Important Information - The company raised $1 billion through a loyalty term loan financing, which was used to cash settle a convertible note [23] - American Airlines ended Q2 with approximately $38 billion in total debt and $29 billion in net debt, the lowest net debt levels since Q3 2015 [23] Q&A Session Summary Question: What percentage of American's flying loses money? - Management indicated that they do not base operations on competitors' perceptions and highlighted their strong hub and spoke network [34][35] Question: Can you provide insights on domestic performance from July to September? - Management noted that July has been challenging but expects about 65% of revenue on the books for Q3, with optimism for August and September [42][44] Question: What are the headwinds faced in the first half of the year? - Management acknowledged a tough first half but expects tailwinds from improving domestic demand and new credit card agreements with Citi [48][49] Question: How does American plan to improve customer experience? - Management will measure improvements through Net Promoter Scores and revenue performance, focusing on premium customer service enhancements [84][86] Question: What is the outlook for capacity and unit costs? - Management expects capacity to increase in Q4, with unit costs projected to be up around 3.5% as they continue to manage costs effectively [52][98]

Financial Data and Key Metrics Changes - The company reported an adjusted pretax profit of $869 million for Q2 2025, with earnings per share of $0.95, which is at the high end of the guidance provided earlier [6][20] - Total revenue for Q2 was $14.4 billion, reflecting a year-over-year increase of 0.4% [20] - The operating margin for Q2 was approximately 8%, with an EBITDAR margin of 14.2%, a decline of 1.5% year-over-year [20][21] - Free cash flow for Q2 was $791 million, contributing to a total of $2.5 billion in the first half of the year [22] Business Line Data and Key Metrics Changes - Long-haul international PRASM increased by 5% for Atlantic routes and approximately 1% for Pacific routes, while domestic unit revenue decreased by approximately 6% year-over-year [8][9] - Managed business revenue grew by 10% year-over-year, outperforming broader industry growth [10] - Active Advantage members increased by 7% year-to-date, with premium cabin unit revenue performing four points better than the main cabin [11] Market Data and Key Metrics Changes - Domestic unit revenue is expected to remain lower year-over-year in Q3, with July anticipated to be the low point [9][24] - The company expects capacity to increase by 2% to 3% year-over-year in Q3, with domestic capacity up approximately 5% during the July peak [24] Company Strategy and Development Direction - The company is focused on enhancing customer experience, operational excellence, and driving efficiencies [7][12] - Plans to expand premium seating and improve the customer experience through new lounge openings and enhanced in-flight services [13][15] - The company aims to restore its historical share of indirect channel revenue by the end of 2025, which could represent $1.5 billion in revenue [60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term initiatives and the ability to recover from current challenges, including weather disruptions and operational issues [26][27] - The company anticipates sequential improvement in revenue performance as demand strengthens in the latter half of the year [24][41] Other Important Information - The company raised $1 billion through a loyalty term loan financing, reducing net debt to $29 billion, the lowest level since Q3 2015 [22] - The company is on track to take delivery of 50 new aircraft this year, with total CapEx expected to be between $3.5 billion and $4 billion [23] Q&A Session Summary Question: Percentage of American flights operating at a loss - Management stated that they do not base operations on competitors' perceptions and highlighted their strong hub and spoke network [32][34] Question: Domestic performance outlook for Q3 - Management indicated that July would be challenging, but they expect sequential improvement in August and September [40][41] Question: Capacity and unit costs outlook - Management confirmed that unit costs are expected to remain in line with previous guidance, with a focus on efficiency initiatives [49][50] Question: Indirect revenue share recovery - Management confirmed plans to restore indirect channel share by the end of 2025, which could lead to significant revenue increases [60] Question: Customer experience improvements - Management emphasized measuring improvements through Net Promoter Scores and revenue performance, with ongoing investments in premium services [83][86]

Core Insights - American Airlines reported quarterly earnings of $0.95 per share, exceeding the Zacks Consensus Estimate of $0.79 per share, but down from $1.09 per share a year ago, representing an earnings surprise of +20.25% [1] - The company achieved revenues of $14.39 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.73% and showing a slight increase from $14.33 billion year-over-year [2] - American Airlines has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of American Airlines' stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's price movement based on recent earnings and future expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $13.78 billion, and for the current fiscal year, it is $0.73 on revenues of $54.3 billion [7] Industry Context - The Transportation - Airline industry, to which American Airlines belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Group 1 - The core viewpoint of the article highlights that American Airlines (AAL.US) reported a 0.4% year-over-year revenue increase to $14.4 billion in Q2, exceeding analyst expectations of $14.3 billion, but net profit fell by 16.4% to $599 million [1] - Adjusted earnings per share (EPS) for Q2 were $0.95, surpassing the analyst consensus of $0.75 [1] - Despite better-than-expected Q2 results, the company's 2025 earnings guidance was disappointing, with adjusted EPS projected between -$0.2 and $0.8, with a midpoint of $0.3, lower than the analyst expectation of $0.72 [1] Group 2 - American Airlines' outlook for the second half of the year contrasts sharply with the more optimistic forecasts from United Airlines (UAL.US) and Delta Airlines (DAL.US) [1] - The company noted that if the domestic market continues to strengthen, its full-year performance could reach the upper end of its guidance range, while new macroeconomic weaknesses could push it to the lower end [1] - CEO Robert Isom mentioned that July was a challenging month due to weak consumer demand, but he believes that supply-demand conditions will become more favorable for airlines in 2025 [2]

2 Commercial update Sales and distribution progress American Airlines Group Inc. SECONER IAL July 24, 2025 2023 2024 2025 YTD Q2 +7% YTD % contribution to premium revenue ~77%1 ~74% ~75% +18% YTD Q2 2025 Q3 2025E Q2 2024 Q3 2024 Q4 2024 Q1 2025 Historical Share ~ (2%) (3% Initial Expectation (5%) (7%) (9%) (10%) (11%) Indirect Channel Flown Revenue Performance¹ 1. Indirect revenue channels contributed over $14B in annual revenue in 2023. Q3 2025E based on current expectations Source: Internal data Revenue s ...

Core Insights - American Airlines provided negative guidance for the current quarter and unusually wide full-year guidance, indicating challenges in maintaining competitive pre-tax margins [1][5]. Financial Performance - For the second quarter, American Airlines reported revenue of $14.4 billion, a 0.4% increase year-over-year. Net income was $628 million, or 91 cents per share, down from $717 million, or $1.01 per share in the same quarter last year [4]. - The company expects a current quarter loss per share between 10 cents and 60 cents, and for the full year, adjusted earnings are projected to range from a loss of 20 cents to a gain of 80 cents per share, with a midpoint of 30 cents [2][3]. Market Position - American Airlines' pre-tax margin was reported at 5.8%, significantly lower than competitors Delta (11.6%) and United (11%) [5]. - The airline noted strong demand in premium cabin travel for international routes, with Atlantic passenger unit revenue increasing by 5%. However, domestic PRASM (Passenger Revenue per Available Seat Mile) declined by 6.4% [6]. Future Outlook - CEO Robert Isom expressed optimism about the return of domestic travelers and indicated that high demand trends are expected to continue, despite challenges faced in July due to weather [2].

All right, let's get over to Phil Labau. He's got a special guest with him this morning, American Airlines CEO, Robert Isam. Phil, take it away.Thank you, Becky. Robert, thank you for joining us. You beat on the top and the bottom line for the second quarter, but it's the guidance that has the shares under pressure.Why such a wide range everywhere from losing for the full year 20 cents to making 80 cents a share. Why the wide range. Well, we're pleased first off with the beat on the second quarter.team did ...

Meanwhile, American Airlines just out with its quarterly results. Want to get over to Phil Leau. He's got those numbers.Phil. Andrew, take a look at shares of American Airlines under a little bit of pressure. This is probably due to the guidance that the company gave.We'll talk about that in just a little bit. In terms of the second quarter, this was a beat on the top and the bottom line. The company earning 91 cents a share compared to 78 cents a share was the estimate out there from the analysts.uh revenu ...

智通财经7月24日电，美国航空盘前股价下跌超5%，因公司预测第三季度亏损超出预期。 ...

Core Insights - American Airlines' third-quarter profit forecast has fallen short of expectations, with the company reinstating its 2025 financial forecast significantly below earlier projections [1] - The adjusted per-share loss forecast for 2025 is now estimated to be as much as 20 cents, or earnings of up to 80 cents, a substantial decrease from the previous adjusted earnings estimates of $1.70 to $2.70 made in January [2] - The airline industry, including American Airlines, withdrew its 2025 financial outlook in April due to fluctuating tariffs and weaker-than-expected demand [2] Financial Performance - In the second quarter, American Airlines reported an adjusted loss per share of 95 cents, which was worse than the Wall Street estimate of 78 cents [2] - The company's revenue for the second quarter was $14.39 billion, slightly below the expected $14.3 billion [2]