American Airlines has reported a significant financial impact from the recent US government shutdown, incurring a loss of approximately $325 million in the fourth quarter of 2025. Despite this setback, the Fort Worth-based carrier achieved record revenues for both the fourth quarter and the entire year, marking a notable achievement as the airline prepares to celebrate its centenary in 2026.
The airline’s financial results reveal that American Airlines generated a record $54.6 billion in revenue for the full year of 2025. After accounting for operating costs of $53.2 billion, the airline reported an annual pre-tax profit of $352 million. Following a provision for income taxes of $115 million, the net income for the year, excluding special items, stood at $237 million.
American Airlines faced particularly high operating costs in 2025, with salaries, wages, and benefits totaling $17.6 billion, while fuel expenses accounted for $10.7 billion. Despite these challenges, the carrier successfully reduced its debt by $2.1 billion during the year. Robert Isom, who has served as Chief Executive Officer since March 2022, expressed confidence in the airline’s future, stating, “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.”
Impact of the Government Shutdown
The fourth quarter of 2025 was a record-breaking period for American Airlines, with revenues reaching an all-time high of $14.0 billion. This figure, however, was notably affected by the US government shutdown that lasted for 43 days, which began in late October and concluded in mid-November. The shutdown disrupted commercial aviation operations, particularly due to the large number of federal employees working in the sector.
As a result of widespread cancellations and operational challenges, American Airlines reported that the shutdown negatively impacted its revenues by approximately $325 million. In contrast, competitor Delta Airlines anticipated a loss of $200 million during the same period. Despite these hurdles, American Airlines managed a Generally Accepted Accounting Principles (GAAP) net income of $99 million, equivalent to $0.15 per diluted share, underscoring the airline’s operational resilience.
Looking Ahead to 2026
American Airlines now faces additional challenges as it navigates the aftermath of Winter Storm Fern, which has caused significant operational disruptions across its network. The storm, described as “the largest weather-related operational disruption in American’s history,” led to over 9,000 cancellations. Consequently, the airline has adjusted its financial guidance for the first quarter of 2026, anticipating a 1.5% capacity reduction and an estimated loss of $150 to $200 million due to the storm’s impact.
Despite these recent setbacks, American Airlines maintains a positive outlook for its centenary year. Isom concluded with optimism, emphasizing that “American is positioned for significant upside in 2026 and beyond.” The airline is preparing to leverage its recent investments and navigate the challenges ahead as it approaches this milestone year.
