American Airlines (AAL) has reported fourth quarter 2025 financial results that missed Wall Street’s forecasts across the board.
The Fort Worth, Texas-based airline announced earnings per share (EPS) of $0.16 U.S., which was less than half the $0.34 U.S. consensus expectation among analysts.
Revenue in the quarter totaled $14 billion U.S., which was below the $14.03 billion U.S. forecast on Wall Street. Sales were up 2.5% from a year earlier.
The airline said that the U.S. federal government shutdown last fall negatively impacted its fourth quarter revenue by $325 million U.S.
Management was quick to turn the page and focus on the year ahead, saying that a new focus on premium travel will “begin delivering results in 2026.”
American Airlines is racing to catch up to its more profitable rivals such as United Airlines (UAL) and Delta (DAL) and capitalize on demand for first class seats from high-spending customers.
Executives at American Airlines, the world’s largest carrier, said they will deliver nearly $2 U.S. of improvement in earnings per share at the midpoint this year.
American also expects to earn 7% to 10% more revenue in the first three months of 2026 compared with 2025.
The carrier has been revamping its fleet, lounges, and food to attract customers who are willing to spend more money on premium tickets and co-branded credit cards.
Management noted that the winter storm currently gripping the U.S. will result in a negative hit to revenue of $150 million U.S. to $200 million U.S. in the current first quarter.
AAL stock has declined 15% over the last 12 months to trade at $14.57 U.S. per share.
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