American Airlines Misses Earnings Estimates as Shutdown and Storm Disrupt Results

Core Insights - American Airlines Group reported fourth-quarter adjusted earnings of $0.16 per share, significantly below analysts' expectations of $0.38 per share [2] - The airline's revenue reached a record $14.0 billion but fell short of the consensus estimate of $14.04 billion, impacted by a U.S. government shutdown that reduced revenue by approximately $325 million [2] Financial Performance - For the full year 2025, American Airlines achieved record revenue of $54.6 billion and adjusted earnings of $0.36 per share [3] - The company successfully reduced total debt by $2.1 billion during the year [3] - Guidance for fiscal 2026 indicates adjusted earnings between $1.70 and $2.70 per share, with the midpoint slightly above the analyst consensus of $2.01 [3] Future Projections - For the first quarter of 2026, American Airlines anticipates an adjusted loss of $0.10 to $0.50 per share, compared to expectations of a $0.29 loss [3] - The impact of Winter Storm Fern led to over 9,000 flight cancellations, the largest weather-related disruption in the company's history, resulting in a projected capacity decline of approximately 1.5 percentage points for the first quarter of 2026 [4] - Despite these challenges, the airline expects first-quarter revenue to increase by 7% to 10% year over year [4]