American Airlines Reports Second-Quarter 2025 Financial Results

Core Insights - American Airlines Group Inc. reported record revenue of $14.4 billion in Q2 2025, driven by a strong recovery in leisure travel and premium cabin demand, particularly for long-haul international flights [2][8] - The company continues to enhance its AAdvantage loyalty program, with active accounts increasing by 7% year-over-year and spending on co-branded credit cards rising by 6% [3] - Operationally, American Airlines faced a 36% increase in disruptive events due to storm activity but demonstrated resilience in recovery [5] Revenue Performance - The company achieved a record quarterly revenue of $14.4 billion, with a year-over-year increase in passenger unit revenue for the fourth consecutive quarter [2][8] - Atlantic passenger unit revenue grew by 5% year-over-year, contributing to the overall revenue performance [2] Customer Experience - American Airlines introduced new features in its Customer Experience organization, allowing customers to use miles for instant upgrades and expanding lounge space at Miami International Airport [4] - The new Flagship Suite was launched, enhancing the premium inflight experience, with plans for further expansion [4] Financial Performance - The second-quarter GAAP net income was $599 million, or $0.91 per diluted share, with an adjusted net income of $628 million, or $0.95 per diluted share [8] - The operating margin for the second quarter was approximately 8%, reflecting the company's focus on cost management [8] Balance Sheet and Liquidity - American Airlines reported an operating cash flow of $3.4 billion and free cash flow of $2.5 billion in the first half of 2025, strengthening its balance sheet [6] - The company ended Q2 2025 with $12 billion in total available liquidity [6] Guidance and Investor Update - For Q3 2025, the company expects an adjusted loss per diluted share between ($0.10) and ($0.60), with full-year adjusted earnings guidance ranging from ($0.20) to $0.80, indicating potential for improved performance if demand strengthens [7]