American Airlines Group Inc. (NASDAQ:AAL) announced Thursday its third-quarter 2025 financial results, with the stock soaring after the airline beat analyst expectations for both revenue and adjusted loss and offered strong forward guidance.
The company reported a record third-quarter revenue of $13.691 billion, a 0.3% increase year-over-year, which exceeded the analyst consensus estimate of $13.628 billion.
The company reported a GAAP net loss of $114 million, or 17 cents per diluted share. The adjusted net loss was $111 million, or 17 cents per share, which beat the analyst estimate of a 28-cent loss, demonstrating better-than-expected cost control and demand resilience that reassured investors.
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Key Operational Metrics and Revenue Breakdown
Key operational metrics showed capacity, measured by available seat miles (ASM), rose 2.3%, and the passenger load factor was 86.0%.
The company’s operation proved resilient despite significant weather events and an FAA technology outage. The AAdvantage loyalty program continued to show strength, with active accounts up 7% and co-branded credit card spending increasing by 9%.
Quarterly total revenue per ASM was 17.69 cents, a drop of 1.9% from the prior year. Domestic passenger revenue increased 0.5% to $8.723 billion, while International passenger revenue decreased 2.5% to $3.748 billion.
Liquidity and Balance Sheet
The company ended the quarter with $10.3 billion of total available liquidity. It reported $36.8 billion of total debt and $29.9 billion of net debt. Year-to-date, net cash provided by operating activities was $3.373 billion, resulting in $1.721 billion in free cash flow.
The company remains on track to cut total debt to below $35 billion by the end of 2027.
Outlook
The airline issued strong guidance, forecasting fourth-quarter adjusted EPS of between 45 cents and 75 cents, which is well above the 31-cent consensus estimate.
The full-year adjusted EPS expectation was raised to a range of 65 cents to 95 cents. The company also expects its full-year free cash flow to exceed $1 billion.
CEO Robert Isom confirmed the team is delivering on commitments, highlighting investments in network and loyalty will “drive revenue growth and shareholder value in 2026 and beyond.” The outlook acknowledged risks from changing conditions and tariffs, but assumes full direct tariff recovery.
“We’ve built a strong foundation, with best-in-class cost management and a focus on strengthening the balance sheet,” he added.
Executive Appointment
Additionally, American Airlines named Nathaniel (Nat) Pieper as its new Chief Commercial Officer, effective November 3. Pieper, who served as CEO of the oneworld alliance since April 2024, will now lead all commercial strategy, including loyalty, partnerships, and revenue management.
Price Action: AAL shares were trading higher by 4.15% to $12.59 at last check Thursday.
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