American Airlines Group Inc. (NASDAQ:AAL) reported a first-quarter loss that came in better than Wall Street expectations, while revenue exceeded forecasts, although shares slipped 1.2% in premarket trading following the release.
Loss narrows, revenue hits record
The airline posted an adjusted loss of $0.40 per share, outperforming the consensus estimate of a $0.47 loss.
Revenue reached a record $13.91 billion, topping analyst expectations of $13.79 billion and rising 10.8% year-on-year. The company said its commercial initiatives helped drive the strong performance, despite a $320 million hit from winter storms.
Outlook for Q2 and full year
For the second quarter, American Airlines expects adjusted earnings per share in a range of -$0.20 to $0.20. The midpoint of zero aligns with general market expectations, though no specific consensus figure was provided.
The carrier also forecasts second-quarter revenue growth of 13.5% to 16.5% compared with the same period last year.
For full-year 2026, the company guided for earnings per share between -$0.40 and $1.10. The midpoint of $0.35 suggests broadly flat performance versus 2025, even as fuel expenses are expected to increase by more than $4 billion.
Management highlights revenue momentum
“American delivered record revenue in the first quarter, and we’re on track for another record in the second quarter,” said Robert Isom, Chief Executive Officer. “This revenue momentum is the result of focus on our four commercial priorities — elevating the customer experience, growing our global network, driving premium revenue and leading in loyalty.”
Strong demand in key regions
The airline reported total unit revenue growth of 7.6% year-on-year, with particularly strong performance in transatlantic routes, where passenger unit revenue jumped 16.7%.
Balance sheet improves
American Airlines ended the quarter with total debt of $34.7 billion, its lowest level since mid-2015, and liquidity of $10.8 billion, reflecting continued balance sheet improvement.