AAG(US:AAL)2025-04-24 11:00Financial Performance - American Airlines reported first-quarter 2025 revenue of $12.6 billion, a decrease of 0.2% compared to the same quarter in 2024[2]. - The company experienced a GAAP net loss of $473 million, or ($0.72) per diluted share, representing a 51.6% increase in net loss year-over-year[4][15]. - Operating income reported a loss of $270 million, compared to a profit of $7 million in the same quarter last year[26]. - Net loss increased by 71.0% to $386 million from $226 million year-over-year[28]. - Total operating expenses increased to $12,821 million from $12,563 million, reflecting rising costs[28]. - Passenger revenue per available seat mile (RASM) increased by 0.3% to 16.30 cents from 16.25 cents[18]. - Total operating costs per available seat mile (CASM) increased to 18.34 cents from 17.82 cents, indicating rising operational costs[28]. Cash Flow and Liquidity - Free cash flow generated in the first quarter was $1.7 billion, contributing to a total debt reduction of $1.2 billion, with total debt reduced by $16.6 billion from peak levels in 2021[6]. - Total available liquidity at the end of the quarter was $10.8 billion, including cash, short-term investments, and undrawn capacity under credit facilities[6]. - Net cash provided by operating activities for Q1 2025 was $2,456 million, an increase from $2,180 million in Q1 2024, representing a growth of approximately 12.6%[31]. - Free cash flow for Q1 2025 was reported at $1,711 million, calculated as net cash provided by operating activities minus adjusted net cash used in investing activities[34]. - The company incurred $1,204 million in net cash used in investing activities for Q1 2025, a decrease from $1,516 million in Q1 2024[31]. Debt Management - The company aims to reduce total debt to less than $35 billion by year-end 2027, positioning its balance sheet for future challenges[6]. - Long-term debt and finance leases, net of current maturities, decreased to $24,713 million from $25,154 million, showing a reduction of about 1.8%[36]. Operational Metrics - Total revenue passenger miles decreased by 1.9% to 56,356 million compared to 57,473 million in the previous year[18]. - Passenger load factor declined by 0.9 percentage points to 80.6% from 81.5% year-over-year[18]. - Average aircraft fuel price decreased by 13.3% to $2.48 per gallon from $2.86 per gallon in the previous year[18]. - The airline's total operating expenses increased by 2.1% year-over-year, driven by higher salaries, wages, and benefits, which rose by 9.2%[15]. Customer Engagement and Future Plans - AAdvantage enrollments increased by 6% year-over-year, with spending on co-branded credit cards up 8% year-over-year, indicating strong loyalty program performance[3]. - The company expects second-quarter 2025 adjusted earnings per diluted share to be between $0.50 and $1.00, while withdrawing its full-year guidance due to economic uncertainty[7]. - American Airlines plans to offer complimentary high-speed satellite Wi-Fi for AAdvantage members starting January 2026, enhancing customer experience[5]. Asset and Liability Management - Total assets increased to $62,609 million as of March 31, 2025, compared to $61,783 million at the end of 2024, reflecting a growth of approximately 1.3%[36]. - Cash and restricted cash at the end of Q1 2025 totaled $931 million, up from $703 million at the end of Q1 2024, indicating a year-over-year increase of about 32.4%[31]. - Current liabilities rose to $26,112 million as of March 31, 2025, compared to $24,295 million at the end of 2024, marking an increase of approximately 7.5%[36]. - Total current assets increased to $13,603 million as of March 31, 2025, compared to $13,154 million at the end of 2024, reflecting a growth of approximately 3.4%[36]. - The company’s accounts receivable, net, decreased to $1,928 million as of March 31, 2025, down from $2,006 million at the end of 2024, indicating a decline of about 3.9%[36].