American Airlines Reports Third-Quarter 2025 Financial Results

Core Viewpoint - American Airlines Group Inc. reported its third-quarter 2025 financial results, highlighting strong revenue performance and a focus on cost management and balance sheet strengthening, with optimism for future growth in 2026 and beyond [1]. Revenue Performance - The company generated third-quarter revenue of $13.7 billion, with year-over-year unit revenues improving throughout the quarter, particularly in September, which saw positive unit revenue growth [2]. - Premium unit revenue growth continues to outperform main cabin revenue growth [2]. Strategic Priorities - American Airlines aims to fully restore its share of indirect revenue impacted by previous sales strategies by the end of the year and plans to expand its share beyond historical levels, which is expected to create significant value [3]. Loyalty Program and Credit Card Performance - The AAdvantage® loyalty program saw a 7% year-over-year increase in active accounts, and spending on co-branded credit cards rose by 9% year-over-year [4]. - The company is preparing for an exclusive partnership with Citi starting in January 2026 [4]. Customer Experience Enhancements - American Airlines is enhancing the travel experience by opening new Flagship® lounges and expanding Admirals Club® lounges, alongside improvements in onboard services and partnerships with Lavazza and Champagne Bollinger [5]. Operational Performance - The airline maintained resilient operations despite challenges from significant weather events and FAA technology outages, thanks to investments in technology and operating systems [6]. Balance Sheet and Liquidity - As of the end of the third quarter, the company reported total debt of $36.8 billion and net debt of $29.9 billion, with a goal to reduce total debt to below $35 billion by the end of 2027 [7]. - The company had $10.3 billion in total available liquidity, including cash, short-term investments, and undrawn credit facilities [7]. Financial Guidance - For the fourth quarter of 2025, adjusted earnings per diluted share are expected to be between $0.45 and $0.75, with full-year adjusted EPS projected between $0.65 and $0.95 [8][9]. - The company anticipates full-year free cash flow exceeding $1 billion [8].