American Airlines Group

AAL · Nasdaq · Industrials · Financials, fiscal 2016 to 2025

AAL · Last close · October 26, 2026

$12.20

American Airlines Group's revenue rose 0.8% to $54.6 billion in fiscal 2025. Its operating margin was 2.7%, down from 4.8% a year earlier. Free cash flow was −$680 million, against $1.3 billion a year earlier. The diluted share count fell 8.3%.

American Airlines Group Inc. Latest fiscal year ended December 31, 2025 10-K filed February 18, 2026 · 0000006201-26-000014 Updated October 22, 2026

Revenue

$54.6B

0.8%

Operating margin

2.7%

2.1 pts

Net income

$111M

86.9%

Free cash flow

−$680M

$1.3B a year earlier

Return on capital

5.7%

6.7 pts

Market cap

$8.1B

Oct 26 close

P/E

—

Loss: no P/E

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

What American Airlines Group does

American Airlines Group is the holding company for American Airlines and its regional airline subsidiaries. Its main business is flying passengers and cargo on a scheduled network, through hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. It serves more than 350 destinations, and about 224 million passengers boarded its flights in 2025.

At the end of 2025 it flew 1,013 mainline aircraft. Regional flights, sold as American Eagle, add 567 more aircraft. These are run by its own regional airlines (Envoy, PSA and Piedmont) and by outside carriers such as Republic and SkyWest. About 57 million passengers boarded regional flights in 2025, and about 42% of them connected to or from mainline flights.

With its outside regional partners, American pays set fees to fly an agreed number of aircraft, whatever the passenger count. American keeps all the ticket and other revenue, and sets the schedules and prices. It also pays certain variable costs, such as landing fees and fuel. It has a cargo division that carries freight and mail, and is a founding member of the oneworld alliance of airlines.

Its biggest risks, as it describes them

A downturn in the economy that cuts demand for air travel.
Its high level of debt and other obligations, and its need for enough financing to operate.
Intense competition in the airline industry.
Strikes and other labor disruptions, and problems at the regional airlines and other outside providers it relies on.
Failures of the technology and automated systems it relies on to run its operations.

From American Airlines Group's annual report on Form 10-K, filed February 18, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2016 to 2025, earnings per share fell 30.8% a year and net income 29.5% a year, as new shares raised the share count by 19% and diluted each share's earnings.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value American Airlines Group yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from American Airlines Group's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from American Airlines Group's cash from operations minus depreciation in fiscal 2025 (free cash flow before spending to grow: capital spending was 1.7 times depreciation, which holds its free cash flow down) of $899M, net cash of −$19.4B at December 31, 2025 and 661 million diluted shares, from its filings. The scenarios are fitted to American Airlines Group: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 3.7% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 13%: 11% for a cyclical or higher-risk business (Passenger Airlines), plus 1 point as a smaller company, worth $8.1B, plus 1 point for unsteady results (a loss in fiscal 2021); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target. A negative value means American Airlines Group's net debt is larger than what that scenario's cash flows are worth today.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus depreciation in fiscal 2025: a rough guide to cash flow before spending to grow, for a company building heavily.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to American Airlines Group's own revenue growth, as above. Cautious: growth of 1.5% then 2% a year, 2% after year 10, a 14% discount rate. Base: growth of 3.5% then 3% a year, 2.5% after year 10, a 13% discount rate. Optimistic: growth of 5.5% then 4% a year, 3% after year 10, a 12% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $12.20
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

The P/E method needs positive earnings, and American Airlines Group's latest diluted earnings per share were negative or zero.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	12.4	9.1	7.7	7.1	5.9
Debt incl. finance leases	35.7	32.6	29.4	25.3	25.4
Net debt (negative means net cash)	23.3	23.5	21.7	18.2	19.4
Net debt to EBITDA	18.8x	6.0x	4.1x	3.8x	5.3x
Debt to equity	—	—	—	—	—
Interest coverage	−0.6x	0.8x	1.4x	1.4x	0.8x
Current ratio	0.9x	0.7x	0.6x	0.5x	0.5x
Quick ratio	0.9x	0.7x	0.6x	0.5x	0.5x

US$ billions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought American Airlines Group shares on the open market, and 3 insiders sold $7.0 million, $3.5 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Jul 31, 2026	Angela OwensSVP Corporate Controller	Sold	40,077	$15.26	$611,575	Form 4
Jul 31, 2026	Stephen L JohnsonVice Chair	Sold	30,000	$15.29	$458,700	Form 4
Jul 30, 2026	Stephen L JohnsonVice Chair	Sold	30,000	$15.26	$457,800	Form 4
Jul 29, 2026	Stephen L JohnsonVice Chair	Sold	30,000	$15.01	$450,300	Form 4
Jul 28, 2026	Angela OwensSVP Corporate Controller	Sold	39,168	$15.34	$600,837	Form 4
Jul 28, 2026	Stephen L JohnsonVice Chair	Sold	30,000	$15.16	$454,800	Form 4
Jul 27, 2026	Stephen L JohnsonVice Chair	Sold	30,000	$14.67	$440,100	Form 4
Jun 25, 2026	David SeymourEVP Chief Operating Officer	Sold plan	56,456	$18.00	$1.0 million	Form 4
Jun 24, 2026	David SeymourEVP Chief Operating Officer	Sold plan	69,343	$17.00	$1.2 million	Form 4
Dec 16, 2025	David SeymourEVP Chief Operating Officer	Sold plan	25,595	$16.01	$409,776	Form 4
Dec 9, 2025	David SeymourEVP Chief Operating Officer	Sold plan	62,507	$15.01	$938,230	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Pass	Fail
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Pass	Fail
Current ratio rose	Fail	Fail	Fail
Share count didn't rise	Fail	Fail	Pass
Gross margin rose	—	—	—
Revenue rose relative to assets	Pass	Pass	Pass
F-score	6 of 8	6 of 8	5 of 8
Accruals ratio	−4.7%	−5.0%	−4.8%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put American Airlines Group side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
American Airlines Group	FY25	0.8%	2.7%	−1.2%	5.7%	5.3x	5
United Airlines	FY25	3.5%	8.0%	4.3%	15.3%	1.2x	6	Compare
Delta Air Lines	FY25	2.8%	9.2%	6.1%	15.9%	1.2x	7	Compare
Southwest Airlines	FY25	2.1%	1.5%	−3.0%	3.7%	0.9x	7	Compare
Alaska Air Group	FY25	21.3%	2.1%	6.6%	2.9%	3.1x	5	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	40.1	42.6	44.5	45.8	17.3	29.9	49.0	52.8	54.2	54.6
Revenue growth	−2.1%	6.2%	4.5%	2.8%	−62.1%	72.4%	63.9%	7.8%	2.7%	0.8%
Gross profit	—	—	—	—	—	—	—	—	—	—
Research and development	—	—	—	—	—	—	—	—	—	—
Operating income	5.1	4.2	2.7	3.1	−10.4	−1.1	1.6	3.0	2.6	1.5
Net income	2.6	1.3	1.4	1.7	−8.9	−2.0	0.1	0.8	0.8	0.1
Diluted EPS (US$)	4.65	2.61	3.03	3.79	−18.36	−3.09	0.19	1.21	1.24	0.17
Diluted shares (millions)	556	492	466	444	484	644	655	720	721	661
Cash flow
Cash from operations	6.5	4.7	3.5	3.8	−6.5	0.7	2.2	3.8	4.0	3.1
Capital expenditure	5.7	6.0	3.7	4.3	2.0	0.2	2.5	2.6	2.7	3.8
Free cash flow	0.8	−1.2	−0.2	−0.5	−8.5	0.5	−0.4	1.2	1.3	−0.7
Dividends paid	0.2	0.2	0.2	0.2	0.0	0.0	0.0	0.0	0.0	0.0
Share buybacks	4.5	1.6	0.8	1.1	0.2	0.0	0.0	0.0	0.0	0.0
Acquisitions	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Stock-based compensation	0.1	0.1	0.1	0.1	0.1	0.1	0.1	0.1	0.1	0.1
Balance sheet at fiscal year end
Cash and short-term investments	6.5	5.2	4.8	3.8	6.9	12.4	9.1	7.7	7.1	5.9
Debt incl. finance leases	24.3	21.8	21.3	21.6	29.9	35.7	32.6	29.4	25.3	25.4
Total assets	51.3	52.8	60.6	60.0	62.0	66.5	64.7	63.1	61.8	61.8
Total liabilities	51.6	53.6	60.7	60.1	68.9	73.8	70.5	68.3	65.8	65.5
Shareholders' equity	−0.3	−0.8	−0.2	−0.1	−6.9	−7.3	−5.8	−5.2	−4.0	−3.7
Margins and ratios
Gross margin	—	—	—	—	—	—	—	—	—	—
Operating margin	12.6%	9.9%	6.0%	6.7%	−60.1%	−3.5%	3.3%	5.8%	4.8%	2.7%
Net margin	6.4%	3.0%	3.2%	3.7%	−51.2%	−6.7%	0.3%	1.6%	1.6%	0.2%
Free cash flow margin	2.0%	−2.9%	−0.5%	−1.0%	−49.0%	1.7%	−0.8%	2.3%	2.4%	−1.2%
Return on capital	16.8%	12.7%	12.4%	13.5%	−48.8%	−5.2%	6.5%	13.0%	12.5%	5.7%
Return on equity	96.6%	—	—	—	—	—	—	—	—	—
Return on assets	5.2%	2.5%	2.5%	2.8%	−14.6%	−3.1%	0.2%	1.3%	1.4%	0.2%
Net debt to EBITDA	2.6x	2.6x	3.3x	3.1x	—	18.8x	6.0x	4.1x	3.8x	5.3x

US$ billions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: American Airlines Group's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with American Airlines Group.