American Airlines Group (AAL) Q4 2024 earnings summary

Executive summary

• Reported record full-year revenue of $54.2B and Q4 revenue of $13.7B, driven by capacity adjustments and strong demand.

• Achieved record free cash flow of $2.2B in 2024 and reduced total debt by $15B from 2021 peak, a year ahead of schedule.

• Q4 adjusted pre-tax profit was $808M and adjusted EPS was $0.86; full-year adjusted EPS was $1.96.

• Announced a 10-year exclusive co-branded credit card agreement with Citi, expected to drive significant incremental value and expand loyalty.

• Achieved nearly $500M in cost savings in 2024, exceeding targets.

Financial highlights

• Q4 operating income was $1.13B (GAAP), up 72.7% year-over-year; full-year operating income was $2.61B.

• Q4 adjusted net income was $609M; Q4 adjusted EBITDA margin 14.9%, adjusted operating margin 8.4%.

• Q4 revenue grew 4.6% year-over-year to $13.7B; unit revenue up 2% year-over-year.

• 2024 cash from co-branded credit cards and partners was $6.1B, up 17% year-over-year, including a one-time payment in Q4.

• Ended 2024 with $10.3B in liquidity and net debt of $31.6B, the lowest since 2015.

Outlook and guidance

• 2025 Q1 adjusted loss per diluted share expected between ($0.20) and ($0.40); full-year adjusted EPS guidance is $1.70-$2.70.

• 2025 capacity expected to be flat to up low single digits year-over-year; revenue growth forecasted at 4.5%-7.5% versus 2024.

• Q1 non-fuel unit costs expected up high single digits; full-year non-fuel unit costs up mid-single digits, mainly from higher salaries and benefits.

• 2025 capex expected at $1.9B-$2.5B, lower than prior plans due to aircraft delivery delays; free cash flow projected to exceed $2B.

• Committed to reducing total debt below $35B by end of 2027.