American Airlines hits record revenue but "carnage" from winter storm cuts into profit

American Airlines (NASDAQ:AAL) delivered a split narrative for its 2025 fiscal year, posting record-breaking top-line growth while battling a "double-whammy" of political and meteorological disruptions that eroded its bottom line.

The Fort Worth-based carrier reported full-year revenue of $54.6 billion, the highest in its history, yet GAAP net income reached only $111 million as the company absorbed massive fourth-quarter costs.

The airline’s "Year of Execution" was severely tested in the final months of 2025.

A 43-day federal government shutdown in October and November—which triggered FAA-mandated capacity cuts at 40 major airports—slashed approximately $325 million from fourth-quarter revenue.

Just as the carrier began to recover, Winter Storm Fern paralyzed its primary hub at Dallas-Fort Worth (DFW) in late January 2026.

The storm, described by flight crews as "operational carnage," forced more than 9,000 cancellations and is expected to drain up to $200 million from the first-quarter 2026 results.

Despite the operational headwinds, American made significant strides in its multi-year deleveraging plan.

The company reduced its total debt by $2.1 billion in 2025, bringing its total down to $36.5 billion.

With $9.2 billion in available liquidity, management remains committed to its goal of reducing total debt by $15 billion from peak levels by the end of 2025.

Following the quarter's performance, the airline issued an adjusted earnings per share (EPS) target of $1.70 to $2.70 for the full year, supported by an expected free cash flow of greater than $2 billion.

While total revenue is expected to rise 7% to 10%, the carrier anticipates an adjusted loss per share of between $0.10 and $0.50.