Free cash flow trajectory is highly volatile, ranging from a negative 16.8% margin in 2023Q4 to a positive 30.4% in 2026Q1, reflecting significant sensitivity to operational and seasonal cycles.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 4.87B | 3.1B | 3.98B | 3.8B | 2.17B | 704M | -6.54B | 3.81B | 3.53B | 4.74B | 6.52B | 6.25B | 3.08B | 675M | 1.28B | 680M | 1.24B | 930M | -1.39B | 1.94B | 1.94B | 1.02B | 717M | 601M | -1.11B | 511M | 3.14B | 2.26B | 3.19B | 2.92B | 2.72B |
| Operating CF Margin % | - | 5.67% | 7.35% | 7.2% | 4.44% | 2.36% | -37.74% | 8.34% | 7.93% | 11.13% | 16.25% | 15.25% | 7.22% | 2.52% | 5.17% | 2.84% | 5.6% | 4.67% | -5.87% | 8.44% | 8.59% | 4.94% | 3.85% | 3.45% | -6.38% | 2.69% | 15.95% | 12.77% | 18.24% | 17.22% | 15.64% |
| Operating CF Growth % | -228.13% | -22.19% | 4.73% | 75.01% | 208.66% | 110.76% | -271.51% | 7.98% | -25.53% | -27.28% | 4.4% | 102.89% | 356.3% | -47.47% | 88.97% | -45.21% | 33.44% | 166.71% | -172.04% | -0.21% | 89.36% | 42.82% | 19.3% | 154.1% | -317.42% | -83.74% | 38.78% | -29.14% | 9.42% | 7.51% | 24.3% |
| Net Income | 202M | 111M | 846M | 822M | 127M | -1.99B | -8.88B | 1.69B | 1.41B | 1.28B | 2.68B | 7.61B | 2.88B | -1.83B | -1.88B | -1.98B | -471M | -1.47B | -2.07B | 504M | 231M | -861M | -761M | -1.23B | -3.51B | -1.76B | 836M | 656M | 1.31B | 985M | 1.24B |
| Depreciation & Amortization | 1.51B | 2.22B | 2.25B | 2.25B | 2.3B | 2.33B | 2.37B | 2.32B | 2.16B | 2.02B | 1.83B | 1.61B | 1.51B | 1.02B | 1.01B | 1.09B | 1.09B | 1.1B | 1.21B | 1.2B | 1.16B | 1.16B | 1.29B | 1.38B | 1.37B | 1.4B | 1.2B | 1.09B | 1.29B | 1.24B | 1.2B |
| Stock-Based Compensation | 0 | 0 | 130M | 102M | 78M | 98M | 91M | 94M | 0 | 90M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 79M | 308M | 299M | 65M | -555M | -2.57B | 560M | 440M | 2.09B | 1.61B | -3.01B | 346M | -324M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -845M | -731M | 461M | 183M | 312M | 362M | 218M |
| Other Non-Cash Items | 2.77B | -56M | 1.18B | -64M | 815M | 1.63B | 1.14B | 24M | 90M | -13M | 157M | 232M | 26M | 1.67B | 1.8B | 1.06B | 279M | 889M | 750M | -81M | 101M | 57M | -115M | -525M | 73M | 226M | 1M | 520M | 191M | 86M | -141M |
| Working Capital Changes | 0 | 746M | -728M | 390M | -1.21B | -814M | 1.31B | -867M | -566M | -721M | 254M | -186M | -1.69B | 138M | 338M | 510M | 340M | 405M | -1.28B | 311M | 450M | 664M | 301M | 977M | -16M | 184M | 737M | 252M | 110M | 243M | 393M |
| Change in Receivables | 0 | -74M | 35M | 95M | -637M | -304M | 538M | 73M | 222M | -190M | -160M | 352M | -160M | -93M | -222M | -164M | 29M | 43M | 217M | -41M | 3M | -156M | -89M | 690M | -66M | 120M | -169M | 261M | -242M | 12M | -225M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 17M | -64M | -81M | -79M | 5M | -128M | -7M | -59M | 8M | 56M | 48M | -39M | -111M | -140M | -35M | -41M | -66M |
| Change in Payables | 0 | 335M | 0 | 0 | 0 | 0 | 0 | 327M | -147M | 299M | 307M | 173M | 110M | 71M | 375M | -354M | -19M | -75M | -421M | 412M | -130M | 250M | -26M | -198M | -32M | 379M | 579M | 42M | 268M | 117M | 261M |
| Cash from Investing | -3.02B | -1.89B | -968M | -502M | 636M | -5.98B | -4.34B | -2.24B | -1.97B | -3.64B | -5.7B | -5.59B | -2.91B | -3.81B | -1.57B | -1.29B | -2.03B | -2.72B | 1.05B | -234M | -1.36B | -1.54B | -1.05B | -645M | -1.39B | -4.69B | -3.27B | -3.45B | -2.25B | -1.74B | -1.21B |
| Capital Expenditures | -2.96B | -3.78B | -2.68B | -2.6B | -2.91B | -204M | -173M | -4.27B | -3.75B | -5.97B | -5.73B | -6.15B | -5.31B | -3.11B | -1.89B | -1.61B | -1.96B | -1.52B | -876M | -714M | -530M | -681M | -1.03B | -680M | -1.88B | -3.64B | -3.68B | -3.54B | -2.66B | -1.39B | -547M |
| CapEx % of Revenue | 5.28% | 6.92% | 4.95% | 4.92% | 5.93% | 0.68% | 1% | 9.33% | 8.41% | 14.01% | 14.28% | 15.01% | 12.45% | 11.64% | 7.6% | 6.73% | 8.85% | 7.64% | 3.69% | 3.11% | 2.35% | 3.29% | 5.51% | 3.9% | 10.8% | 19.2% | 18.67% | 19.96% | 15.19% | 8.2% | 3.15% |
| Acquisitions | 243M | 344M | 654M | 230M | 147M | -28M | 41M | 904M | 1.21B | 947M | 123M | 35M | 33M | 334M | 123M | 0 | 4M | 76M | 480M | 228M | 49M | 40M | 265M | -1.29B | -3.4B | -742M | -50M | 160M | -272M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -455M | 254M | 65M | 275M | 0 | -220M | -1.14B | 164M | -7M | 0 | 2M | 0 | 307M | 0 | 0 | -288M | 0 | 52M | -20M | 45M | 34M | 1M | -12M | 1.96B | 3.35B | -3.62B | 797M | 97M | -2.66B | 281M | 257M |
| Cash from Financing | -1.78B | -1.05B | -2.79B | -3.21B | -2.63B | 5.29B | 10.99B | -1.57B | -1.67B | -1.15B | -894M | -1.26B | -315M | 3.8B | 483M | 727M | 804M | 1.75B | 382M | -1.68B | -591M | 533M | 331M | 60M | 2.51B | 4.21B | 137M | 1.18B | -914M | -1.19B | -1.52B |
| Debt Issued (Net) | -694M | -891M | -2.8B | -2.9B | -2.69B | 4.64B | 8.15B | -291M | -646M | 641M | 3.8B | 2.77B | 64M | 2.09B | 489M | 24M | -612M | 574M | -267M | -2.32B | -1.37B | 121M | 324M | 59M | 2.41B | 3.82B | 70M | 1.68B | -301M | -648M | -2.13B |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | -21M | 442M | 2.8B | -1.1B | -837M | -1.61B | -4.5B | -3.85B | -1.06B | 0 | 0 | 0 | 0 | 412M | 294M | 497M | 400M | 279M | 7M | 1M | 3M | 37M | 67M | -846M | -860M | -540M | 614M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | -43M | -178M | -186M | -198M | -224M | -278M | -144M | -1.08B | -970M | -2.22B | -302M | 0 | -1.55B | -1.54B | -2.89B | -1.14B | -827M | -741M | -732.36M | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -21M | -18M | -173M | -1.1B | -837M | -1.61B | -4.5B | -3.85B | -1.06B | -92M | -253M | -367M | -106M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -871M | -945M | -740M | 0 |
| Other Financing | -1.08B | -160M | 3M | -310M | 77M | 208M | 88M | -2M | -3M | -58M | -44M | 9M | 827M | -109M | -6M | 2.22B | 310M | 769M | 1.9B | 1.69B | 375M | 1.27B | 0 | 0 | 823.36M | 352M | 0 | 354M | 270M | 0 | 0 |
| Net Change in Cash | -79M | 303M | 83M | 181M | 802M | -130M | 23M | 321M | -284M | -963M | -546M | -627M | -2.52B | 3.48B | 747M | 403M | 5M | -37M | 74M | -13M | -59M | 648M | 0 | 16M | 2M | 31M | 4M | -2M | 33M | -4M | -14M |
| Free Cash Flow | 1.91B | -680M | 1.3B | 1.21B | -733M | 496M | -8.67B | -453M | -212M | -1.23B | 793M | 98M | -2.23B | -2.44B | -609M | -934M | -721M | -591M | -2.27B | 1.22B | 1.41B | 343M | -310M | -79M | -2.99B | -3.13B | -536M | -1.27B | 534M | 1.53B | 2.17B |
| FCF Margin % | 3.41% | -1.24% | 2.4% | 2.29% | -1.5% | 1.66% | -50.03% | -0.99% | -0.48% | -2.88% | 1.98% | 0.24% | -5.23% | -9.12% | -2.45% | -3.9% | -3.25% | -2.97% | -9.55% | 5.33% | 6.24% | 1.66% | -1.66% | -0.45% | -17.18% | -16.5% | -2.72% | -7.19% | 3.05% | 9.02% | 12.49% |
| FCF Growth % | 21.26% | -152.31% | 7.71% | 264.67% | -247.78% | 105.72% | -1814.79% | -113.68% | 82.72% | -254.73% | 709.18% | 104.39% | 8.53% | -300.49% | 34.8% | -29.54% | -22% | 73.96% | -285.76% | -13.27% | 310.79% | 210.65% | -292.41% | 97.36% | 4.38% | -483.77% | 57.96% | -338.76% | -65.1% | -29.46% | 72.55% |
| FCF per Share | 2.89 | -1.03 | 1.80 | 1.68 | -1.12 | 0.77 | -17.93 | -1.02 | -0.46 | -2.50 | 1.43 | 0.14 | -3.04 | -22.66 | -4.87 | -7.47 | -5.80 | -5.38 | -23.47 | 10.94 | 14.29 | 5.55 | -5.17 | -1.34 | -51.52 | -54.34 | -8.88 | -21.69 | 8.18 | 22.38 | 31.56 |
| FCF Conversion (FCF/Net Income) | 9.46x | 27.92x | 4.71x | 4.63x | 17.11x | -0.35x | 0.74x | 2.26x | 2.50x | 3.70x | 2.52x | 0.82x | 1.07x | -0.37x | -0.68x | -0.34x | -2.63x | -0.63x | 0.66x | 3.84x | 8.39x | -1.19x | -0.94x | -0.49x | 0.32x | -0.29x | 3.86x | 2.30x | 2.43x | 2.96x | 2.67x |
| Interest Paid | 800M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.09B | 1.04B | 964M | 873M | 814M | 713M | 485M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 237M | 277M | 411M | 520M |
| Taxes Paid | 9M | 0 | 8M | 0 | 0 | 0 | 0 | 0 | 18M | 20M | 16M | 20M | 7M | 12M | 6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 71M | 408M | 294M | 194M |
High operating leverage sensitivity
As reported in recent financial statements, the relationship between net income and operating cash flow for American Airlines is frequently disconnected, evidenced by a 2026Q1 operating cash flow of $4.2 billion against a net loss of $382 million, highlighting significant non-cash adjustments and working capital volatility.
The extreme variance in the OCF/NI ratio suggests that reported net income is a poor proxy for the company's actual cash-generating capability. Investors should monitor these recurring discrepancies, as they often mask the underlying operational challenges inherent in the airline's high-fixed-cost business model.
Based on AAL's reported figures, free cash flow margins have fluctuated wildly, ranging from a negative 16.8% in 2023Q4 to a positive 30.4% in 2026Q1, indicating that the company's ability to generate sustainable cash after capital expenditures remains highly sensitive to seasonal and operational cycles.
This erratic FCF performance suggests that the company lacks a stable cash-generation engine, making it difficult to rely on internal funds for debt reduction or fleet modernization. The frequent swings into negative territory imply that capital intensity often outpaces the cash generated from core flight operations.
According to historical data, AAL's capital expenditure as a percentage of revenue has remained elevated, peaking at 11.6% in 2025Q4, which underscores the heavy financial burden required to maintain a modern, fuel-efficient fleet in a highly competitive and capital-intensive industry environment.
The persistent need for significant capital investment suggests that the company is perpetually locked in a cycle of reinvestment just to maintain its competitive standing. This high capital intensity limits the company's financial flexibility and may necessitate continued reliance on external financing to fund future growth initiatives.
As indicated by the 2024Q4 financial data, a negative working capital change of $728 million significantly impacted cash flow, demonstrating that the company's cash position is highly susceptible to the timing of payables and the inherent seasonality of passenger bookings and loyalty program liabilities.
The lumpy nature of these working capital shifts suggests that management's cash flow management is heavily influenced by external timing factors rather than consistent operational efficiency. Analysts should remain cautious, as these fluctuations can temporarily inflate or deflate cash balances, potentially obscuring the true underlying health of the business.
Quick answers to the most common questions about buying AAL stock.
American Airlines Group Inc. (AAL) generated $3.10B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
American Airlines Group Inc. (AAL) reported negative free cash flow of $680.0M in 2025, indicating capital requirements exceeded cash from operations.
American Airlines Group Inc. (AAL) spent $3.78B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.