American Airlines has revealed its fourth-quarter and full-year financial results for 2025, reporting a significant impact from the recent government shutdown that cost the airline approximately $325 million in lost revenue. Despite these challenges, the Fort Worth-based carrier achieved record-breaking revenues for both the fourth quarter and the entire year. This performance positions American Airlines favorably as it approaches its centenary year in 2026.
Record Financial Performance Despite Setbacks
The airline recorded a historic total of $54.6 billion in revenue for 2025. This figure reflects the company’s ability to generate income even in the face of considerable operating costs, which reached $53.2 billion. Ultimately, American Airlines reported a pre-tax profit of $352 million. After accounting for a $115 million income tax provision, the net income stood at $237 million, excluding special items.
Salaries, wages, and benefits represented the largest portion of operating expenses, totaling $17.6 billion. Additionally, the airline faced fuel and related tax costs amounting to $10.7 billion. In a statement, CEO Robert Isom emphasized, “We have built a strong foundation, and we look forward to taking advantage of the investments we have made in our customer experience, network, fleet, partnerships, and loyalty program.”
Impact of the Government Shutdown and Weather Disruptions
The fourth quarter was particularly noteworthy, with American Airlines achieving revenues of $14.0 billion. However, this figure was adversely affected by the U.S. government shutdown that lasted for 43 days, ending in mid-November. The shutdown severely disrupted aviation operations, as many of those working in the sector are federal employees. As a result, American Airlines reported that this situation negatively impacted fourth-quarter revenue by approximately $325 million. Competitor Delta Air Lines projected a loss of $200 million due to similar challenges.
Despite these setbacks, American Airlines still managed to achieve a Generally Accepted Accounting Principles (GAAP) net income of $99 million, or $0.15 per diluted share, for the fourth quarter. This resilience underscores the airline’s operational capabilities even during difficult circumstances.
Looking ahead, American Airlines faces additional challenges following the disruption caused by Winter Storm Fern, which led to significant operational delays. The storm resulted in over 9,000 cancellations, marking it as “the largest weather-related operational disruption in American’s history.” In response, the airline has adjusted its financial guidance, implementing a 1.5% capacity reduction for the first quarter of 2026, which is expected to result in an additional loss of $150 million to $200 million.
Despite the challenges posed by both the government shutdown and adverse weather conditions, American Airlines remains optimistic about the future. With the centenary year approaching, Isom concluded, “American is positioned for significant upside in 2026 and beyond.” This outlook reflects the airline’s commitment to navigating difficulties while capitalizing on its strong market position and operational improvements.
