AAG(US:AAL)2025-04-24 11:01Financial Performance - Total operating revenues for Q1 2025 were $12,551 million, a slight decrease of 0.2% compared to $12,570 million in Q1 2024[19] - Net loss for Q1 2025 was $473 million, compared to a net loss of $312 million in Q1 2024, representing a 51.8% increase in losses year-over-year[20] - Operating expenses increased to $12,821 million in Q1 2025, up 2.1% from $12,563 million in Q1 2024[19] - The company reported a basic and diluted loss per common share of $0.72 for Q1 2025, compared to $0.48 for Q1 2024[19] - The company reported a net periodic benefit income of $24 million for pension benefits in Q1 2025, compared to an income of $36 million in Q1 2024[57] - The company reported an operating loss of $268 million in Q1 2025, compared to an operating income of $13 million in Q1 2024[68] - The net loss for Q1 2025 was $384 million, compared to a net loss of $216 million in Q1 2024[70] - Pre-tax loss for Q1 2025 was $648 million, an increase of $235 million or 56.9% compared to Q1 2024[122] Revenue and Passenger Metrics - Total operating revenues for the three months ended March 31, 2025, were $12,551 million, slightly down from $12,570 million in 2024, with total passenger revenue at $11,391 million compared to $11,458 million in 2024[36] - Total passenger revenue decreased to $11,391 million in Q1 2025 from $11,458 million in Q1 2024, a decline of 0.6%[84] - Passenger revenue decreased by $67 million, or 0.6%, to $11.391 billion in Q1 2025 compared to Q1 2024, impacted by economic uncertainty and a fatal accident[143] - Atlantic passenger revenue per available seat mile (PRASM) increased by 10.5% in Q1 2025 compared to Q1 2024[124] - Pacific PRASM increased by 4.9% in Q1 2025 compared to Q1 2024[124] - Total revenue per available seat mile (TRASM) increased by 0.7% to 17.95 cents in Q1 2025 from 17.83 cents in Q1 2024[126] Cash Flow and Liquidity - Cash and restricted cash at the end of Q1 2025 totaled $931 million, an increase from $703 million at the end of Q1 2024[25] - Net cash provided by operating activities was $2,456 million in Q1 2025, compared to $2,180 million in Q1 2024, reflecting a 12.6% increase[25] - Total available liquidity as of March 31, 2025, was $10.8 billion, consisting of $7.5 billion in unrestricted cash and short-term investments[132] - AAG's net cash provided by operating activities increased to $2.5 billion in Q1 2025 from $2.2 billion in Q1 2024, a 12.5% increase driven by net working capital changes[167] - American's net cash provided by operating activities was $2.3 billion in Q1 2025, up from $2.2 billion in Q1 2024, reflecting a 9% increase[174] Debt and Liabilities - Total stockholders' deficit increased to $4,508 million as of March 31, 2025, compared to $3,977 million at the end of 2024[23] - Long-term debt and finance leases, net of current maturities, decreased to $24,713 million as of March 31, 2025, from $25,154 million at the end of 2024[23] - The total carrying value of long-term debt, including current maturities, was $28.857 billion as of March 31, 2025, with a fair value of $28.538 billion[54] - As of March 31, 2025, American Airlines' total long-term debt was $24,439 million, a decrease from $25,372 million as of December 31, 2024, reflecting a reduction of approximately 3.7%[89] - The company prepaid $144 million of equipment notes and $308 million of senior secured notes in the first quarter of 2025, indicating proactive debt management strategies[93] Operating Expenses - Operating expenses increased to $12,817 million in Q1 2025 from $12,556 million in Q1 2024, primarily driven by higher salaries, wages, and benefits, which rose to $4,220 million from $3,865 million[68] - Salaries, wages, and benefits increased by $355 million or 9.2% in Q1 2025 compared to Q1 2024[121] - Labor contract expenses for the three months ended March 31, 2025, were $31 million, down from $57 million in 2024, reflecting a reduction in severance expenses and adjustments related to vacation accruals[32] - Total operating expenses rose by $258 million, or 2.1%, to $12.821 billion in Q1 2025 from $12.563 billion in Q1 2024[145] Legal and Regulatory Matters - The company is currently engaged in multiple legal proceedings, including antitrust actions related to the Northeast Alliance, which could have material financial impacts[66] Future Outlook and Risks - The company is considering capital raising and liability management activities due to significant financial commitments related to existing debt and new flight equipment[189] - The company does not currently have a foreign currency hedge program, exposing it to fluctuations in foreign exchange rates, particularly with the Euro, Canadian dollar, and British pound sterling[195] - There have been no material changes in the company's risk factors as previously disclosed in its 2024 Form 10-K[203]