American Airlines hits record revenue as debt falls below $35 billion
The airline reported first-quarter revenue of $13.9 billion, a 10.8% increase over the same period last year.
American Airlines Group (AAL), the Dallas-based carrier, reported record first-quarter revenue of $13.9 billion. The result represented a 10.8% increase year-over-year from the $12.55 billion recorded in the first quarter of 2025.
The quarter was marked by a significant reduction in leverage. Total debt decreased to $34.7 billion by the end of the period, the lowest level since mid-2015. The company said this met its goal of falling below $35 billion a year ahead of schedule.
Profitability metrics showed improvement as the pre-tax margin rose nearly 2 points year-over-year. The company reported a 3.4% pre-tax margin for the first quarter of 2026, compared to a 5.2% pre-tax loss in the first quarter of 2025. Total unit revenue increased 7.6% year-over-year.
Growth was driven largely by international travel and loyalty programs. Atlantic passenger unit revenue grew 16.7% year-over-year, outperforming the 6.6% growth in domestic passenger revenue per available seat mile (ASM). Managed corporate revenue also increased 13% year-over-year.
The AAdvantage program saw accelerating momentum, with enrollments growing 25% year-over-year. This followed a 7% growth rate in the fourth quarter of 2025. Co-branded credit card spend rose 9% year-over-year, up from 8% growth in 2025.
Operating costs rose during the period. Operating cost per ASM, excluding net special items, fuel, and profit sharing, increased 5.2% year-over-year to 15.29 cents, compared to 14.54 cents in the first quarter of 2025.
Despite the quarterly revenue record, the company significantly lowered its full-year 2026 adjusted EPS guidance to a range of -$0.40 to $1.10. The midpoint of this new range is approximately flat to 2025, down from the $1.70 to $2.70 range provided in January 2026.
Looking ahead, American Airlines projects second-quarter total revenue growth between 13.5% and 16.5%. This represents an acceleration over the 7.0% to 10.0% growth projected for the first quarter.
In a leadership change, the company announced that Steve Johnson, Vice Chair and Chief Strategy Officer, will retire at the end of 2026.