American Airlines upbeat for 2026 despite $200m winter storm hit

27th Jan 2026 12:53

(Sharecast News) - American Airlines remained confident for the current year on Tuesday, despite the federal shutdown denting fourth-quarter earnings and the severe US winter storm grounding planes.

Operating revenues in the fourth quarter rose 2.5% to $14bn, and by 0.8% over the full year to $54.6bn. The extended federal shutdown wiped around $325m off fourth-quarter revenues, however, with domestic passenger unit revenues falling 2.5%.

In an interview with CNBC, chief executive Robert Isom acknowledged the shutdown had "hit us hard...it hit us harder than others".

Net income, meanwhile, fell sharply, sliding 83.2% to $99m in the fourth quarter and by 86.8% in the year to $111m, after expenses rose. Excluding net special items, earnings per share were $0.16, well behind forecasts for $0.36.

Looking to current trading and American said the weekend's intense winter storm would likely wipe between $150m and $200m off first-quarter earnings.

Sunday saw the largest flight cancellation in the US since early 2020, as heavy snowfall and freezing temperatures grounded planes. American called the ongoing storm the largest weather-related operational disruption in its history, with more than 9,000 flight cancellations to date. However, Isom remained confident for the year ahead.

He said: "American Airlines is positioned for significant upside in 2026 and beyond.

"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 programme."

The company is currently forecasting adjusted earnings per diluted share of between $1.70 and $2.70 for the year. EPS in 2025 were $0.17.