American Airlines Group (AAL) Company Report

American Airlines achieved its goal of reducing total debt to below $37 billion by the end of 2024, ahead of its 2025 target, and is now aiming for below $35 billion by the end of 2027.
The new Citi deal for the AAdvantage program, commencing in January 2026, is projected to generate 10% annual growth in remuneration, contributing to a $1.5 billion EBIT improvement versus 2024 by the end of the decade.
The company is heavily investing in its premium product, anticipating 50% growth in lie-flat seats and 30% growth in overall premium seats over the next few years, as premium traffic currently constitutes 50% of revenues and is expanding.
American Airlines expects to close its margin gap with competitors in 2026 due to sales and distribution recovery, international tailwinds, and secured labor contracts, with an objective to achieve a double-B credit rating in the near term.

Dec 10, 2025, 2:00 PM

Transcript

American Airlines Discusses Debt Reduction, Growth Plans, and Premium Strategy

AAL

Debt Issuance

New Projects/Investments

Revenue Acceleration/Inflection

American Airlines has significantly reduced its total debt from $54 billion to below $37 billion, with a further target of $35 billion.
The company has secured labor contracts, ensuring cost certainty through 2027-2028, and plans to grow its airline by approximately 5% annually with $3 billion-$3.5 billion in aircraft capital expenditures.
Premium traffic now accounts for 50% of revenues and is growing, supported by planned 50% growth in lie-flat seats and 30% growth in premium seats over the next few years.
The Citi partnership, commencing in January 2026, is expected to provide a $1.5 billion boost to the P&L, with cash remuneration projected to reach $10 billion as the decade progresses.

Dec 10, 2025, 2:00 PM

Transcript

American Airlines Outlines Debt Reduction Progress and Future Growth Drivers

AAL

New Projects/Investments

Guidance Update

Revenue Acceleration/Inflection

American Airlines (AAL) has made significant progress in debt reduction, achieving its goal of reducing total debt by $15 billion by the end of 2025 a year early, reaching below $39 billion by the end of 2024. The company targets further reduction to below $35 billion by the end of 2027 and aims for a Net Debt to EBITDA ratio approaching 3X.
The company has secured labor contracts through 2027-2028, providing cost certainty and enabling a focus on customer experience.
AAL is heavily investing in its premium offerings and fleet modernization, with lie-flat seat growth of 50% and overall premium seat growth of 30% projected over the next few years. Premium traffic currently constitutes 50% of revenues and is growing.
The new Citi loyalty program deal, set to begin in January 2026, is expected to contribute an additional $1.5 billion in EBIT improvement versus 2024, with cash remuneration from the program projected to grow approximately 10% annually.
Despite a margin gap in 2024, American Airlines anticipates closing this gap in 2026 and beyond, driven by improvements in sales and distribution, a favorable domestic versus international balance, and the stability provided by its labor contracts.

Dec 10, 2025, 2:00 PM

Transcript

American Airlines Discusses Debt Reduction, Loyalty Program Growth, and 2026 Outlook

AAL

Debt Issuance

New Projects/Investments

Guidance Update

American Airlines achieved its debt reduction target of $15 billion by the end of 2024, a year early, and aims to reduce total debt below $35 billion by the end of 2027 to reach a 3x net debt to EBITDA ratio and a double B credit rating.
Remuneration from the loyalty program, including the Citi agreement, is expected to grow from $5.5 billion (for the four quarters ended Q3 2024) to approximately $10 billion by the end of the decade, projected to add an incremental $1.5 billion to earnings (EBIT).
The company is pursuing a premiumization strategy, planning a 20% total increase in premium seats and a 50% increase in lie-flat seats by 2030, which is anticipated to be a significant profit driver.
American Airlines continues to focus on cost efficiency, hitting its 2025 cost guide, and expects 2026 to be a strong year with the domestic market acting as a tailwind.

Dec 3, 2025, 9:05 PM

Transcript

American Airlines CFO Discusses Debt Reduction, Loyalty Program Growth, and 2026 Outlook

AAL

Guidance Update

New Projects/Investments

Revenue Acceleration/Inflection

American Airlines (AAL) achieved its target of reducing total debt by $15 billion by the end of 2025 a year early in 2024, and has set a new goal to reduce total debt below $35 billion by the end of 2027.
The company's new agreement with Citi is projected to increase loyalty program remuneration from approximately $5.5 billion (for the four quarters ended Q3 2024) to around $10 billion by the end of the decade, which is expected to improve earnings by $1.5 billion.
AAL anticipates growing its capacity by about 5% annually, supported by its current order book, and expects to achieve low single-digit unit cost growth. Mainline capacity growth was about 6% from 2023 to 2025, while mainline headcount growth was about 1% over the same period, indicating improved efficiency.
AAL is making significant investments in premium products, including a 20% total increase in premium seats and a 50% increase in lie-flat seats by 2030, which is expected to be a profit driver.

Dec 3, 2025, 9:05 PM

Transcript

Alstom Reports Strong First-Half 2025/26 Performance

AAL

Earnings

Guidance Update

Revenue Acceleration/Inflection

Sales for the first half of fiscal year 2025/26 reached €9,059 million, marking a 7.9% organic increase compared to the same period in the previous fiscal year.
Adjusted EBIT grew 13% to €580 million, with the Adjusted EBIT margin improving by 50bps to 6.4% compared to H1 2024/25.
Net profit (Group share) significantly increased to €220 million for H1 2025/26, up from €53 million in the first half of fiscal year 2024/25.
Orders received totaled €10.5 billion in H1 2025/26, representing a 3% organic decrease, while the backlog stood at €96,122 million as of September 30, 2025.
Alstom upgraded its FY 2025/26 organic sales outlook to above 5% (from 3-5% previously), while reaffirming its Adjusted EBIT margin around 7% and Free Cash Flow within €200-400 million.

Nov 13, 2025, 5:00 PM

Press Release

SES Reports Solid 9 Months and Q3 2025 Results Following Intelsat Acquisition

AAL

Earnings

Guidance Update

M&A

SES reported solid 9 months 2025 financial results, with revenue of €1,747 million (+19.8% year-over-year) and Adjusted EBITDA of €849 million (+11.0% year-over-year), reflecting the full consolidation of Intelsat from July 17, 2025.
The company provided a FY25 combined financial outlook, expecting revenue in the range of €2.60-2.70 billion and Adjusted EBITDA in the range of €1.17-1.21 billion, with CapEx reduced to €0.6-0.7 billion.
SES signed €1.4 billion of new business and contract renewals year-to-date 2025, contributing to a total combined gross backlog of €7.1 billion as of September 30, 2025.
An interim 2025 dividend of €104 million (€0.25 per A-share; €0.10 per B-share) was paid on October 16, 2025, with a final 2025 dividend of at least the same amount expected in April 2026.

Nov 6, 2025, 6:30 AM

Press Release

American Airlines Announces Job Cuts Amid Operational Challenges

AAL

Layoffs

Profit Warning

New Projects/Investments

American Airlines is implementing a significant reduction in its corporate workforce, estimated to be between 4% and 5% of its total workforce, primarily affecting mid-management and support roles at its Fort Worth headquarters. Some roles are being transferred offshore to a new operations hub in Hyderabad, India.
Despite reporting record third-quarter revenue, American Airlines suffered a net loss and a Q3 loss of $0.17 per share. The layoffs are aimed at optimizing performance rather than being directly financially motivated.
The airline is navigating operational challenges, including a shortage of air traffic controllers, and is shifting its strategy towards becoming a premium full-service carrier by investing in premium business products and operational improvements.
Financial metrics indicate significant concerns, including a low current ratio (0.54), a quick ratio of 0.42, a debt-to-equity ratio of -9.1, and an Altman Z-Score of 0.72, which signals distress and potential bankruptcy risk within two years.

Nov 4, 2025, 1:27 AM

Bloomberg

American Airlines Discusses Q3 2025 Outlook and Long-Term Revenue Strategy

AAL

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

American Airlines anticipates its third quarter 2025 revenue to align with projections, with booking trends showing improvement from July into August, September, and October.
The company is strategically focused on enhancing revenue performance to address a margin gap, notably through a new exclusive credit card partnership with Citi, which is projected to yield $1.5 billion in EBIT improvement by the end of the decade.
Ongoing cost efficiency initiatives, including re-engineering the business and procurement efforts, have already resulted in over $500 million in working capital improvements and are expected to contribute an additional 1.5 margin points by the end of 2025.
Demand for premium products remains robust, and corporate travel is recovering, with the company on track to restore corporate business to Q1 2023 levels by the end of 2025.
American Airlines expects its third quarter 2025 ASMs to be at the low end of its guidance due to operational challenges, but forecasts increased capacity growth in the fourth quarter of 2025.

Sep 11, 2025, 5:00 PM

Transcript

American Airlines Provides Business Update at Morgan Stanley Conference

AAL

Guidance Update

New Projects/Investments

Revenue Acceleration/Inflection

American Airlines is comfortable with its third quarter 2025 revenue guide, noting an improving demand environment with August and September better than July, and October looking better than September.
The company is focused on closing its margin gap, attributed to historic revenue underperformance, through initiatives including a new exclusive credit card deal with Citi, projected to drive 10% annual growth and contribute $1.5 billion in EBIT improvement by the end of the decade.
American Airlines continues to drive cost efficiencies, with re-engineering initiatives expected to remove another 1.5 margin points from its cost structure by the end of 2025, and procurement efforts yielding over $500 million in working capital improvements to date.

Sep 11, 2025, 5:00 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for American Airlines Group.

Q3 2025

Oct 23, 2025

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Q2 2025

Jul 24, 2025

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Q1 2025

Apr 24, 2025

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American Airlines Group (AAL)

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