American Airlines Narrows Q1 Loss to $382M as Revenue Climbs 11%
American Airlines (NASDAQ: AAL), a major U.S. air carrier, posted a net loss of $382 million for the first quarter of fiscal 2026, narrowing from a $473 million loss in the same period a year earlier.
American Airlines, a major U.S. air carrier, posted a net loss of $382 million for the three months ending March 31, 2026, narrowing from a $473 million loss in the same period a year earlier. The improvement came as revenue rose and operating losses shrank despite higher labor costs. Read more earnings reports.
Total revenue climbed 10.8% to $13.91 billion for the quarter, up from $12.55 billion in the first quarter of fiscal 2025. Passenger revenue accounted for $12.50 billion, while cargo revenue contributed $214 million. Other revenue, including loyalty programs and related services, totaled $1.20 billion, a 23.9% increase from $969 million in the prior-year quarter.
The airline swung to a narrower operating loss of $36 million compared with an operating loss of $268 million a year earlier. Labor and related expenses rose 10.7% to $4.67 billion from $4.22 billion, reflecting the carrier's largest operating expense category.
Cash Flow and Balance Sheet
Cash from operations surged to $4.20 billion in the quarter, nearly doubling from $2.35 billion in the same period last year. Cash used in investing activities totaled $2.31 billion, while financing activities consumed $1.94 billion, primarily reflecting debt repayment. Long-term debt declined to $19.19 billion as of March 31, 2026, down from $20.89 billion at the end of fiscal 2025.
Total assets stood at $72.31 billion as of March 31, 2026, up from $70.25 billion three months prior. Cash and restricted cash edged down to $988 million from $1.04 billion at year-end 2025.
Equity Position
American Airlines reported a stockholders' deficit of $4.21 billion as of March 31, 2026, compared with a deficit of $3.93 billion at the end of fiscal 2025. Retained deficit widened to $4.21 billion from $3.93 billion. The company had 661.4 million common shares outstanding at quarter-end.
The carrier reported a loss per share of $0.58 for the quarter, improving from a loss of $0.72 per share in the first quarter of fiscal 2025, based on 661.2 million weighted average shares outstanding.
Key Financial Data
| Metric | Q1 FY2026 | Q1 FY2025 | Change |
|---|---|---|---|
| Total Revenue | $13.91B | $12.55B | +10.8% |
| Operating Loss | ($36M) | ($268M) | Narrowed |
| Net Loss | ($382M) | ($473M) | Narrowed 19.2% |
| Cash from Operations | $4.20B | $2.35B | +78.7% |
| Loss Per Share | ($0.58) | ($0.72) | Improved |
| Long-Term Debt | $19.19B | $20.89B* | -8.1% |
*As of December 31, 2025