American Airlines (AAL) reported revenue rose to $14.0B in Q4, despite the government shutdown negatively impacting revenue in the fourth quarter by approximately $325 million. Passenger revenue was up 2.1% during the quarter to $12.7B. Notably, year-over-year passenger unit revenue performance improved sequentially versus the third quarter in each of the international entities.
Revenue passenger miles were up 1.5% during the quarter, while available seat miles were 4.2% higher. American’s (AAL) passenger load factor fell to 82.7% from 84.9% a year ago. Operating costs per available seat mile were 3.8% higher.
Looking ahead, American Airlines (AAL) noted bookings strengthened meaningfully in January. Systemwide revenue intakes for the first three weeks of 2026 are up double digits year over year, driven by strong performance in the premium cabins and corporate channels. Based on these bookings, the company expects solidly positive first-quarter unit revenue for the domestic entity and the system, with total revenue growing 7.0% to 10.0%. Full-year EPS of $1.70 to $2.70 (midpoint $2.20) is expected vs. $2.01 consensus.
American Airlines (AAL) said Winter Storm Fern resulted in more than 9,000 flight cancellations to date, making it the largest weather-related operational disruption in the company’s history. As a result, the company’s first-quarter 2026 guidance incorporates approximately a 1.5-point reduction to capacity, an estimated negative revenue impact of $150-$200 million, and approximately a 1.5-point increase in CASM-ex.
Shares of American Airlines (AAL) rose 3.8% in premarket trading to $15.13 vs. the 52-week range of $8.50 to $17.47.