American Airlines has reported a significant impact from the recent government shutdown, estimating a loss of approximately $325 million in revenue for the fourth quarter of 2025. Despite this setback, the Fort Worth-based airline achieved record financial results for both the fourth quarter and the entire year, marking a notable performance amid challenging circumstances.
Record Revenues Despite Shutdown Fallout
In 2025, American Airlines generated a remarkable $54.6 billion in total revenue, the highest in its history. The airline faced considerable operating costs of $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, excluding special items, stood at $237 million. The carrier’s largest expenses included salaries, wages, and benefits, which totaled $17.6 billion, along with fuel costs reaching $10.7 billion.
Robert Isom, the Chief Executive Officer of American Airlines since March 2022, expressed confidence in the company’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 and Weather Challenges
The fourth quarter of 2025 was a record-setting period for American Airlines, with revenues hitting $14.0 billion. However, this figure could have been even greater if not for the US government shutdown that began in late September and lasted for 43 days, severely affecting the aviation sector. Many federal employees, essential to the operation of commercial airlines, were impacted, leading to widespread cancellations and delays.
American Airlines reported that the shutdown negatively influenced its revenue, with an estimated loss of $325 million for the fourth quarter. Other airlines, such as Delta, projected losses of around $200 million due to similar circumstances. Despite these challenges, American Airlines recorded a Generally Accepted Accounting Principles (GAAP) net income of $99 million, or $0.15 per diluted share, showcasing its operational resilience during a difficult period.
The airline’s challenges continued into early 2026, as Winter Storm Fern caused significant operational disruptions. This storm, described by American Airlines as “the largest weather-related operational disruption in American’s history,” resulted in over 9,000 cancellations. The airline has adjusted its financial guidance, anticipating a 1.5% capacity reduction for the first quarter, leading to projected losses of between $150 million and $200 million.
Despite these setbacks, American Airlines remains optimistic about its centenary year in 2026. Isom concluded, “American is positioned for significant upside in 2026 and beyond,” indicating a focus on recovery and growth amid recent challenges.
