American Airlines reported a significant financial impact from the recent government shutdown, which cost the airline an estimated $325 million in lost revenue during the fourth quarter of 2025. Despite this setback, the airline achieved record-breaking revenues, marking both the fourth quarter and the entire year as historic periods for the Fort Worth-based carrier.
In 2025, American Airlines reached a total revenue of $54.6 billion, surpassing previous records even when factoring in the disruption caused by the government shutdown. The airline’s operating costs for the year were substantial, amounting to $53.2 billion, leading to an annual pre-tax profit of $352 million. After accounting for a $115 million income tax provision, the net income for the year, excluding special items, stood at $237 million.
Record Revenue Despite Challenges
The airline’s fourth quarter alone generated a remarkable $14.0 billion in revenue, setting a new high-water mark. However, this figure could have been even greater without the disruptions stemming from the government shutdown, which lasted 43 days and concluded in mid-November. The shutdown severely affected the operational capacity of commercial aircraft, primarily because many aviation professionals are federal employees.
The widespread flight cancellations during this period not only hampered operations but also negatively impacted American Airlines’ revenue. In a statement, the airline noted that the shutdown led to “approximately $325 million in revenue loss” during the fourth quarter. In comparison, Delta Airlines also anticipated a loss of around $200 million as a result of the shutdown’s effects.
Despite these challenges, American Airlines still posted a Generally Accepted Accounting Principles (GAAP) net income of $99 million, translating to $0.15 per diluted share for the fourth quarter, showcasing the airline’s resilience in difficult circumstances.
Looking Ahead to 2026
As American Airlines prepares to enter its centenary year in 2026, the airline faces additional challenges from recent adverse weather events. Winter Storm Fern created significant disruptions, leading to over 9,000 cancellations and affecting operational capacity across much of the Eastern United States. The airline characterized the storm as “the largest weather-related operational disruption in American’s history.”
In light of these developments, American Airlines has adjusted its financial guidance for the first quarter of 2026, anticipating a 1.5% reduction in capacity that could result in losses of between $150 million and $200 million.
Despite these challenges, CEO Robert Isom expressed optimism about the future. He stated, “American is positioned for significant upside in 2026 and beyond.” With a strong foundation built over the years, the airline looks forward to leveraging its investments in customer experience, network, fleet, partnerships, and loyalty programs to enhance its operations in the coming year.
American Airlines’ ability to navigate through these significant setbacks while still achieving record revenues exemplifies its resilience and adaptability in the face of adversity. As the airline moves towards its centenary, stakeholders will be closely watching how it manages future challenges and capitalizes on opportunities for growth.
