AAL Q3 2025 Earnings

Call Details

• Call Title: American Airlines Group, Inc. Q3 2025 Earnings Call
• Date: October 23, 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)
  • Nat Pieper (Chief Commercial Officer (incoming, joins November 3, 2025))

Call Summary

Financial Performance

• American reported an adjusted pre-tax loss of $139 million for Q3 2025, equal to an adjusted diluted loss per share of $0.17.
• Q3 adjusted loss per share represented a 50% beat versus the midpoint of prior guidance as stated on the call.
• Record third quarter revenue was $13.7 billion, which was about 1% ahead of the midpoint of initial guidance.
• Domestic PRASM improved sequentially each month and turned positive in September according to the prepared remarks.
• Premium unit revenue outpaced main cabin unit revenue by five RASM points in Q3 2025.
• Total debt at the end of Q3 was $36.8 billion, which was down by $1.2 billion from Q2 2025.

Guidance

• For Q4 2025, American expects capacity to be up between 3% and 5% year-over-year.
• For Q4 2025, revenue is expected to be up between 3% and 5% year-over-year, with unit revenues approximately flat year-over-year if the midpoint is achieved.
• For Q4 2025, CASM-X is anticipated to be up between 2.5% and 4.5% year-over-year.
• For Q4 2025, adjusted operating margin is expected to be between 5% and 7% and adjusted EPS is forecasted between $0.45 and $0.75.
• Full-year 2025 adjusted EPS guidance was updated to a range of $0.65 to $0.95 per share.
• The company expects to generate free cash flow of over $1.0 billion for 2025.