AAL Q2 2025 Earnings

Call Details

• Call Title: American Airlines Group, Inc. Q2 2025 Earnings Call
• Date: July 24, 2025 at 12:30 PM UTC
• Management Team:
  • Neil Russell (Vice President, 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 an adjusted pre-tax profit of $869M for Q2 and adjusted diluted earnings per share of $0.95.
• Second quarter revenue was $14.4B, up 0.4% year-over-year.
• Operating margin, excluding net special items, was approximately 8% in the quarter.
• Second quarter unit cost excluding fuel and net special items was up 3.4% year-over-year.
• EBITDA margin was 14.2%, representing a 1.5 point decline year-over-year.
• The company generated $791M of free cash flow in the quarter and $2.5B in free cash flow for the first half of 2025.
• American ended Q2 with approximately $38B of total debt and $29B of net debt, the lowest net debt since Q3 2015.
• Total available liquidity at quarter end was $12B.

Guidance

• For Q3 2025, the company expects capacity to be up 2% to 3% year-over-year.
• The company expects Q3 revenue to be between down 2% and up 1% year-over-year, with July as the weakest month and sequential improvement expected in August and September.
• Q3 non-fuel unit costs are expected to be up 2.5% to 4.5% year-over-year driven primarily by ratified collective bargaining agreements.
• The company expects a Q3 loss per share between $0.10 and $0.60 based on current demand assumptions and fuel price forecast.
• Full-year 2025 earnings per share are expected to be between a loss of $0.20 and a profit of $0.80, with a midpoint profit of $0.30.
• 2025 aircraft deliveries are now expected at 50 aircraft, at the high end of the previous 40 to 50 delivery range.
• 2025 aircraft CapEx is now expected to be $2.5B to $3B, and total CapEx is expected to be $3.5B to $4B.