American Airlines has reported a significant financial impact from the recent U.S. government shutdown, which cost the airline approximately $325 million in lost revenue for the fourth quarter of 2025. Despite this setback, the Fort Worth-based carrier achieved record revenues, marking both the fourth quarter and the full year as historic milestones for the airline.
In total, American Airlines generated a record $54.6 billion in revenue for 2025, a remarkable achievement considering the operational challenges posed by the shutdown. The airline’s operating costs were substantial, amounting to $53.2 billion, which resulted in a pre-tax profit of $352 million. After accounting for a $115 million tax provision, American Airlines reported a net income of $237 million, excluding special items.
Record-Breaking Revenues Despite Challenges
The fourth quarter of 2025 was a standout period for American Airlines, with revenues hitting an all-time high of $14.0 billion. However, this figure could have been even greater had it not been for the U.S. government shutdown that disrupted commercial air traffic. The shutdown, which lasted for 43 days and concluded in mid-November, hindered the operations of many federal employees in the aviation sector, resulting in widespread flight cancellations due to staffing shortages.
Robert Isom, the Chief Executive Officer of American Airlines since March 2022, highlighted the resilience of the airline during this challenging period. “We have built a strong foundation, and we look forward to taking advantage of the investments we have made in our customer experience, network, fleet, partnerships, and loyalty program,” Isom stated.
Despite the operational challenges, American Airlines still achieved a Generally Accepted Accounting Principles (GAAP) net income of $99 million, equating to $0.15 per diluted share for the fourth quarter. This performance underscores the airline’s ability to navigate difficulties while maintaining financial stability.
Looking Ahead to 2026
As American Airlines prepares for its centenary year in 2026, the airline is optimistic about future growth. Yet, recent weather disruptions, particularly from Winter Storm Fern, have prompted the airline to revise its financial guidance for the first quarter of 2026. The storm, described as “the largest weather-related operational disruption in American’s history,” led to over 9,000 cancellations and significant operational challenges.
In response, American Airlines has reduced its first-quarter capacity guidance by 1.5%, which is expected to result in an additional financial hit of $150 million to $200 million. Despite these recent setbacks, Isom remains confident about the airline’s trajectory. “American is positioned for significant upside in 2026 and beyond,” he concluded.
As the airline industry continues to recover from unprecedented challenges, American Airlines’ ability to adapt to external pressures will be crucial. The company’s focus on enhancing customer experience and operational efficiency will play a pivotal role in navigating the upcoming year and fostering long-term growth.
