Company Reports

Before the pandemic, much of American Airlines’ story was based on realizing cost efficiencies from its 2013 merger with US Airways and investing in its hubs to expand margins. While margins bumped up to 15.1% in 2015, American saw steady unit cost growth through 2019, when it delivered a 6.7% operating margin. We expect American can achieve some operating cost improvement in the coming years, but we don't expect it to structurally improve its position among airlines.

American earned $446 million operating income on second-quarter sales of $16.7 billion, a 2.7% margin. Management is investing in more premium seating to compete with Delta and United and announced that it intends to regain historical market share among local travelers at some of its US hubs.

Before the pandemic, much of American Airlines’ story was based on realizing cost efficiencies from its 2013 merger with US Airways and investing in its hubs to expand margins. While margins bumped up to 15.1% in 2015, American saw steady unit cost growth through 2019, when it delivered a 6.7% operating margin. We expect American can achieve some operating cost improvement in the coming years, but we don't expect it to structurally improve its position among airlines.

American Airlines reported a $41 million operating loss on $14 billion of revenue in the first quarter. Management is investing in more premium seating to compete with Delta and United and announced that it intends to increase capacity more aggressively than competitors in the coming months.

Before the pandemic, much of American Airlines’ story was based on realizing cost efficiencies from its 2013 merger with US Airways and investing in its hubs to expand margins. While margins bumped up to 15.1% in 2015, American saw steady unit cost growth through 2019, when it delivered a 6.7% operating margin. We expect American can achieve some operating cost improvement in the coming years, but we don't expect it to structurally improve its position among airlines.

We lowered our forecast for long-term air travel growth based on observed relationships among overall economic growth, demand for air travel, and the US share of global travel, which reduced our 2030 forecast for US airline capacity by 8%. We now suspect US airline capacity may shrink 1% in 2026.

Before the pandemic, much of American Airlines’ story was based on realizing cost efficiencies from its 2013 merger with US Airways and investing in its hubs to expand margins. While margins bumped up to 15.1% in 2015, American saw steady unit cost growth through 2019, when it delivered a 6.7% operating margin. We expect American can achieve some operating cost improvement in the coming years, but we don't expect it to structurally improve its position among airlines.

Fuel prices have spiked since March 6, as US-Israeli attacks on oil infrastructure in Iran threatened global petroleum supply. We updated our forecasts to reflect the impact of higher fuel costs through the second quarter, offsetting some of the benefit of long-term tax deferrals in our valuations.

Before the pandemic, much of American Airlines’ story was based on realizing cost efficiencies from its 2013 merger with US Airways and investing in its hubs to expand margins. While margins bumped up to 15.1% in 2015, American saw steady unit cost growth through 2019, when it delivered a 6.7% operating margin. We expect American can achieve some operating cost improvement in the coming years, but we don't expect it to structurally improve its position among airlines.

Since the US and Israel launched an attack on Iran on Feb. 28, and Iran pledged to close the Strait of Hormuz to petroleum shipments, market prices for crude oil and other distillates like kerosene or heating oil have risen 12% in the two trading days since.

American Airlines reported a $451 million operating profit on $14 billion of revenue in the fourth quarter. The US government shutdown cost American approximately $359 million in the quarter. Management plans to reconfigure its fleet with more premium seating to compete with Delta and United.

Before the pandemic, much of American Airlines’ story was based on realizing cost efficiencies from its 2013 merger with US Airways and investing in its hubs to expand margins. While margins bumped up to 15.1% in 2015, American saw steady unit cost growth through 2019, when it delivered a 6.7% operating margin. We expect American can achieve some operating cost improvement in the coming years, but we don't expect it to structurally improve its position among airlines.

Airbus issued a directive on Nov. 28, followed by regulators, for airlines to immediately roll back a software update on flight computers present in thousands of A320-family jets before operating them again. Most operators were able to patch their affected aircraft overnight by Nov. 29.

To reduce strain on the unfunded and understaffed air traffic control system, the US Federal Aviation Administration announced restrictions on air traffic at 40 busy airports to go into effect Friday, Nov. 7, that would reduce flights by about 10% until the US government regains funding.

Before the pandemic, much of American Airlines’ story was based on realizing cost efficiencies from its 2013 merger with US Airways and investing in its hubs to expand margins. While margins bumped up to 15.1% in 2015, American saw steady unit cost growth through 2019, when it delivered a 6.7% operating margin. We expect American can achieve some operating cost improvement in the coming years, but we don't expect it to structurally improve its position among airlines.

American Airlines reported $151 million operating profit on flat $13.7 billion of revenue in the third quarter. While unit revenue declined nearly 2% from the second quarter of 2024, structural unit costs grew 4%. Management described plans to reconfigure its planes to fit more premium seats.

American Airlines reported $1.1 billion operating profit on $14.4 billion of revenue in the second quarter. While total unit revenue declined about 20 basis points from the second quarter of 2024, structural unit costs grew 5%. Management's updated expectations for 2025 don't augur improving costs.

Before the pandemic, much of American Airlines’ story was based on realizing cost efficiencies from its 2013 merger with US Airways and investing in its hubs to expand margins. While margins bumped up to 15.1% in 2015, American saw steady unit cost growth through 2019, when it delivered a 6.7% operating margin. We expect American can achieve some operating cost improvement in the coming years, but we don't expect it to structurally improve its position among airlines.

American Airlines reported a $270 million operating loss on $12.5 billion in revenue in the first quarter. While unit revenue was essentially unchanged, unit costs grew 8%. Due to slackening demand for leisure travel and economic uncertainty, management withdrew its guidance for 2025.

Before the pandemic, much of American Airlines’ story was based on realizing cost efficiencies from its 2013 merger with US Airways and investing in its hubs to expand margins. While margins bumped up to 15.1% in 2015, American saw steady unit cost growth through 2019, when it delivered a 6.7% operating margin. We expect American can achieve some operating cost improvement in the coming years, but we don't expect it to structurally improve its position among airlines.