AAG(US:AAL)2025-10-23 11:02Financial Performance - Total operating revenues for Q3 2025 were $13,691 million, a slight increase from $13,647 million in Q3 2024, while year-to-date revenues reached $40,634 million compared to $40,551 million in the same period last year[19]. - Passenger revenue for Q3 2025 was $12,471 million, down 0.4% from $12,523 million in Q3 2024, with year-to-date passenger revenue at $36,985 million, a decrease of 0.5% from $37,184 million[19]. - Operating income for Q3 2025 was $151 million, compared to $89 million in Q3 2024, while year-to-date operating income decreased to $1,015 million from $1,480 million[19]. - Net loss for Q3 2025 was $114 million, an improvement from a net loss of $149 million in Q3 2024, with year-to-date net income at $12 million compared to $256 million in the same period last year[21]. - The company reported a total comprehensive loss of $99 million for Q3 2025, an improvement from a loss of $126 million in Q3 2024[21]. - For the three months ended September 30, 2025, the company recorded a net loss of $114 million, while for the nine months ended September 30, 2025, the net income was $599 million[28]. - Net income for Q3 2025 was $10 million, recovering from a net loss of $41 million in Q3 2024, while net income for the nine months ended September 30, 2025, was $344 million, down from $536 million in the same period of 2024[82]. - Operating income for Q3 2025 was $167 million, compared to $90 million in Q3 2024, with a nine-month operating income of $1,042 million, down from $1,496 million in the same period of 2024[80]. Cash Flow and Liquidity - Cash and restricted cash at the end of Q3 2025 totaled $938 million, slightly up from $933 million at the end of Q3 2024[26]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $3,373 million, down from $3,585 million in the same period of 2024[26]. - As of September 30, 2025, total available liquidity was $10.3 billion, consisting of $6.9 billion in unrestricted cash and short-term investments[151]. - The maximum availability under revolving credit and other facilities as of September 30, 2025, was $3.4 billion[49]. Debt and Liabilities - Current liabilities increased to $24,638 million as of September 30, 2025, compared to $24,295 million at the end of 2024[24]. - Long-term debt and finance leases, net of current maturities, remained stable at $25,113 million as of September 30, 2025, compared to $25,154 million at the end of 2024[24]. - Total long-term debt as of September 30, 2025, was $28.365 billion, a decrease from $30.118 billion at the end of 2024[48]. - The company replaced approximately $2.3 billion in outstanding term loans with new loans under the AAdvantage Term Loan Facilities, with a reduced quarterly principal amortization of approximately $6 million starting July 2025[51]. - An additional $1.0 billion of incremental term loans was incurred under the 2025 AAdvantage Term Loan Facility, with a quarterly principal amortization of approximately $3 million beginning July 2025[52]. - The company prepaid $487 million of equipment notes and $308 million of senior secured notes during the first nine months of 2025[56]. Assets and Investments - Total assets as of September 30, 2025, were $62,141 million, an increase from $61,783 million at the end of 2024[24]. - The company’s equity investments totaled $563 million as of September 30, 2025, reflecting an increase from $515 million at the end of 2024[67]. - The company holds a 25% equity interest in Republic Airways Holdings Inc., the parent company of Republic[73]. Revenue Breakdown - Cargo revenue increased by $10 million, or 5.0%, in Q3 2025, primarily due to a 4.3% increase in cargo yield[143]. - Other operating revenue increased by $86 million, or 9.4%, in Q3 2025, driven primarily by higher revenue from the loyalty program[144]. - Loyalty revenue from travel for the three months ended September 30, 2025, was $1,069 million, compared to $984 million in 2024, representing an increase of about 8.6%[99]. - The loyalty program liability increased to $10.514 billion as of September 30, 2025, from $10.054 billion at the end of 2024, reflecting a deferral of revenue of $3.362 billion and recognition of revenue of $(2.902) billion[46]. Operating Expenses - Total operating expenses for Q3 2025 were $13,521 million, slightly lower than $13,555 million in Q3 2024[80]. - Salaries, wages, and benefits increased by $363 million, or 8.9%, in Q3 2025, due to contractual wage rate increases and higher benefit costs[165]. - Aircraft fuel and related taxes were $2.8 billion in Q3 2025, a decrease of $107 million, or 3.7%, compared to Q3 2024[146]. - Total operating cost per available seat mile (CASM) was 17.49 cents in Q3 2025, a decrease of 2.4% from 17.92 cents in Q3 2024[149]. Taxation - The company recorded an income tax benefit of $28 million and an income tax provision of $36 million for the three and nine months ended September 30, 2025, primarily due to the utilization of NOLs[60]. - American Airlines recorded an income tax provision of $128 million in the first nine months of 2025[215]. Pension and Benefits - For the three months ended September 30, 2025, the net periodic benefit income for pension benefits was $(30) million, compared to $(39) million in 2024[68]. - The service cost for pension benefits for the nine months ended September 30, 2025, was $2 million, compared to $1 million in 2024[68]. - American Airlines made required contributions of $224 million to its defined benefit pension plans[69]. Special Items - Special items for the three months ended September 30, 2025, included labor contract expenses of $31 million, while the previous year reported $516 million for the same period[98].