AAL Q1 2025 Earnings

Call Details

• Call Title: American Airlines Group, Inc. Q1 2025 Earnings Call
• Date: April 24, 2025 at 12:30 PM UTC
• Management Team:
  • Abriell Jackson (Managing Director of Investor Relations)
  • Robert Isom (Chief Executive Officer)
  • Devin May (Chief Financial Officer)
  • Steve Johnson (Vice Chair and Chief Strategy Officer)

Call Summary

Financial Performance

• American reported a GAAP net loss of $473M for Q1 2025 and an adjusted net loss excluding net special items of $386M, or an adjusted loss of $0.59 per diluted share.
• First quarter revenue was $12.6B, which was down 0.2% year over year, while unit revenue was up 0.7% year over year.
• First quarter unit cost excluding fuel and net special items was up 7.8% year over year.
• Atlantic passenger RASM was up 10.5% year over year, and Pacific passenger RASM was up 4.9% year over year on 24.1% more capacity.
• Premium revenue increased 3% year over year on 0.3% lower capacity, and premium cabin paid load factor was up 2.9 points year over year.
• Loyalty revenue was up 5% year over year and credit card spending was up 8% in the quarter.
• Managed business revenue was up 8% year over year in Q1.
• The company estimated the Flight 5342 accident reduced first quarter revenue by approximately $200M.

Guidance

• American withdrew its full-year outlook due to macro uncertainty and indicated a negative bias to capacity beyond summer 2025.
• For Q2 2025, capacity is expected to be up 2% to 4% year over year.
• The company expects Q2 2025 revenue to be down 2% to up 1% year over year.
• Q2 2025 non-fuel unit cost is expected to be up 3% to 5% year over year.
• Based on current demand assumptions and fuel price forecast, Q2 2025 earnings are expected to be approximately $0.50 to $1.00 per diluted share.
• American expects to take delivery of 40 to 50 new aircraft in 2025 and expects 2025 aircraft CapEx of $2.0B to $2.5B and total CapEx of $3.0B to $3.5B.