Revenue growth accelerated to 16.3% YoY in Q2 2026, but operating margin fell to 2.7% from 7.9% in Q2 2025, and net margin was just 0.4%.
American Airlines Group Inc. (AAL) annual income statement — 30-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 58.34B | 54.63B | 54.21B | 52.79B | 48.97B | 29.88B | 17.34B | 45.77B | 44.54B | 42.62B | 40.14B | 40.99B | 42.65B | 26.74B | 24.86B | 23.98B | 22.17B | 19.92B | 23.77B | 22.93B | 22.56B | 20.71B | 18.64B | 17.44B | 17.42B | 18.96B | 19.7B | 17.73B | 17.52B | 16.96B | 17.36B |
| Revenue Growth % | 7.53% | 0.78% | 2.7% | 7.79% | 63.88% | 72.36% | -62.12% | 2.75% | 4.5% | 6.18% | -2.07% | -3.89% | 59.48% | 7.6% | 3.65% | 8.16% | 11.31% | -16.2% | 3.62% | 1.65% | 8.94% | 11.09% | 6.91% | 0.11% | -8.14% | -3.76% | 11.13% | 1.22% | 3.3% | -2.34% | 2.68% |
| Cost of Goods Sold | 46.08B | 44.16B | 42.75B | 40.98B | 39.93B | 29.86B | 24.56B | 34.64B | 34.49B | 31.29B | 28.42B | 27.97B | 31.94B | 20.66B | 20.59B | 20.52B | 18.16B | 5.46B | 8.98B | 6.39B | 5.99B | 13.62B | 11.46B | 10.39B | 11.16B | 11.88B | 10.91B | 9.77B | 8.88B | 8.95B | 8.9B |
| COGS % of Revenue | - | 80.83% | 78.85% | 77.63% | 81.55% | 99.91% | 141.68% | 75.68% | 77.43% | 73.42% | 70.79% | 68.23% | 74.89% | 77.25% | 82.84% | 85.58% | 81.9% | 27.42% | 37.78% | 27.87% | 26.56% | 65.77% | 61.44% | 59.58% | 64.06% | 62.64% | 55.35% | 55.12% | 50.68% | 52.77% | 51.28% |
| Gross Profit | 12.26B | 10.47B | 11.46B | 11.81B | 9.04B | 27M | -7.23B | 11.13B | 10.05B | 11.33B | 11.73B | 13.02B | 10.71B | 6.08B | 4.27B | 3.46B | 4.01B | 14.46B | 14.79B | 16.54B | 16.57B | 7.09B | 7.19B | 7.05B | 6.26B | 7.08B | 8.8B | 7.96B | 8.64B | 8.01B | 8.46B |
| Gross Margin % | 21.02% | 19.17% | 21.15% | 22.37% | 18.45% | 0.09% | -41.68% | 24.32% | 22.57% | 26.58% | 29.21% | 31.77% | 25.11% | 22.75% | 17.16% | 14.42% | 18.1% | 72.58% | 62.22% | 72.13% | 73.44% | 34.23% | 38.56% | 40.42% | 35.94% | 37.36% | 44.65% | 44.88% | 49.32% | 47.23% | 48.72% |
| Gross Profit Growth % | - | -8.67% | -2.92% | 30.69% | 33370.37% | 100.37% | -164.91% | 10.76% | -11.29% | -3.38% | -9.96% | 21.59% | 76.02% | 42.64% | 23.37% | -13.83% | -72.24% | -2.25% | -10.61% | -0.17% | 133.72% | -1.38% | 1.99% | 12.59% | -11.62% | -19.47% | 10.54% | -7.88% | 7.88% | -5.34% | 1.56% |
| Operating Expenses | 11.25B | 9B | 8.85B | 8.78B | 7.43B | 1.09B | 3.19B | 8.07B | 7.39B | 7.1B | 6.67B | 6.82B | 6.46B | 4.69B | 4.12B | 4.5B | 3.71B | 15.46B | 16.68B | 15.58B | 15.51B | 7.18B | 7.33B | 7.89B | 9.59B | 9.55B | 7.42B | 6.8B | 6.65B | 6.08B | 6.62B |
| OpEx % of Revenue | - | 16.48% | 16.33% | 16.63% | 15.17% | 3.63% | 18.43% | 17.63% | 16.6% | 16.66% | 16.61% | 16.64% | 15.15% | 17.52% | 16.57% | 18.75% | 16.71% | 77.62% | 70.17% | 67.92% | 68.75% | 34.66% | 39.33% | 45.26% | 55.06% | 50.38% | 37.64% | 38.36% | 37.97% | 35.87% | 38.13% |
| Selling, General & Admin | 2.12B | 2B | 1.81B | 1.8B | 1.81B | 1.1B | 666M | 2B | 1.52B | 1.48B | 1.32B | 1.39B | 1.54B | 1.16B | 1.06B | 1.1B | 7.82B | 7.66B | 7.65B | 7.8B | 7.89B | 8.61B | 8.52B | 9.12B | 11.59B | 10.06B | 9.43B | 8.85B | 8.43B | 8.21B | 8.45B |
| SG&A % of Revenue | - | 3.66% | 3.34% | 3.41% | 3.71% | 3.67% | 3.84% | 4.38% | 3.41% | 3.47% | 3.3% | 3.4% | 3.62% | 4.33% | 4.26% | 4.6% | 35.29% | 38.46% | 32.2% | 34% | 34.96% | 41.56% | 45.67% | 52.32% | 66.55% | 53.04% | 47.84% | 49.94% | 48.11% | 48.39% | 48.65% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 7.01B | 7.04B | 6.98B | 5.62B | -12M | 2.53B | 6.06B | 5.88B | 5.62B | 5.34B | 5.42B | 4.92B | 3.53B | 3.06B | 3.39B | -4.12B | 7.8B | 9.02B | 7.78B | 7.62B | -1.43B | -1.18B | -1.23B | -2B | -504M | -2.01B | -2.05B | -1.78B | -2.12B | -1.83B |
| Operating Income | 1.01B | 1.47B | 2.61B | 3.03B | 1.61B | -1.06B | -10.42B | 3.06B | 2.66B | 4.23B | 5.06B | 6.2B | 4.25B | 1.4B | 148M | -1.04B | 308M | -1B | -1.89B | 965M | 1.06B | -89M | -144M | -844M | -3.33B | -2.47B | 1.38B | 1.16B | 1.99B | 1.93B | 1.84B |
| Operating Margin % | 1.73% | 2.69% | 4.82% | 5.75% | 3.28% | -3.54% | -60.11% | 6.7% | 5.96% | 9.93% | 12.61% | 15.14% | 9.96% | 5.23% | 0.6% | -4.32% | 1.39% | -5.04% | -7.95% | 4.21% | 4.7% | -0.43% | -0.77% | -4.84% | -19.12% | -13.03% | 7.01% | 6.52% | 11.35% | 11.36% | 10.59% |
| Operating Income Growth % | - | -43.88% | -13.84% | 88.8% | 251.75% | 89.84% | -440% | 15.4% | -37.23% | -16.38% | -18.44% | 46.01% | 203.72% | 845.27% | 114.27% | -436.69% | 130.68% | 46.85% | -295.75% | -8.96% | 1291.01% | 38.19% | 82.94% | 74.66% | -34.86% | -278.86% | 19.46% | -41.85% | 3.22% | 4.73% | 81.18% |
| EBITDA | 2.99B | 3.44B | 4.54B | 4.97B | 3.58B | 1.28B | -8.06B | 5.38B | 4.81B | 6.25B | 6.89B | 7.81B | 5.76B | 2.42B | 1.16B | -815M | 1.41B | 100M | -682M | 2.26B | 17.62B | 15.79B | 13.77B | 533M | 8.92B | -1.07B | 2.58B | 2.43B | 3.27B | 2.89B | 2.75B |
| EBITDA Margin % | 5.13% | 6.3% | 8.37% | 9.41% | 7.32% | 4.27% | -46.47% | 11.76% | 10.81% | 14.66% | 17.15% | 19.06% | 13.51% | 9.05% | 4.68% | -3.4% | 6.36% | 0.5% | -2.87% | 9.87% | 78.11% | 76.22% | 73.86% | 3.06% | 51.21% | -5.62% | 13.11% | 13.69% | 18.7% | 17.04% | 15.83% |
| EBITDA Growth % | -26.92% | -24.19% | -8.65% | 38.67% | 180.88% | 115.84% | -249.66% | 11.84% | -22.97% | -9.27% | -11.86% | 35.6% | 138.1% | 108.08% | 242.7% | -157.8% | 1310% | 114.66% | -130.14% | -87.16% | 11.64% | 14.62% | 2483.86% | -94.03% | 936.87% | -141.27% | 6.43% | -25.89% | 13.32% | 5.17% | 20.84% |
| D&A (Non-Cash Add-back) | 1.98B | 1.98B | 1.93B | 1.94B | 1.98B | 2.33B | 2.37B | 2.32B | 2.16B | 2.02B | 1.83B | 1.61B | 1.51B | 1.02B | 1.01B | 222M | 1.1B | 1.1B | 1.21B | 1.3B | 16.56B | 15.88B | 13.92B | 1.38B | 12.25B | 1.4B | 1.2B | 1.27B | 1.29B | 964M | 909M |
| EBIT | 1.38B | 1.91B | 3.09B | 3.27B | 2.15B | -748M | -10.23B | 3.35B | 2.94B | 4.45B | 5.14B | 5.5B | 4.1B | -1.32B | -1.81B | -1.17B | 286M | -1.01B | -1.35B | 1.4B | 1.26B | -15.56B | -13.38B | -13.05B | -15.82B | -15.77B | -11.13B | -10.19B | -8.3B | -4.57B | -4.47B |
| Net Interest Income | -575M | -1.36B | -1.47B | -1.55B | -1.75B | -1.78B | -1.19B | -968M | -938M | -959M | -928M | -841M | -856M | -836M | -606M | -785M | -766M | -668M | -589M | -557M | -722M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 291M | 357M | 468M | 591M | 216M | 18M | 41M | 127M | 118M | 94M | 63M | 39M | 31M | 20M | 26M | 26M | 26M | 76M | 181M | 337M | 308M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 866M | 1.72B | 1.93B | 2.15B | 1.96B | 1.8B | 1.23B | 1.09B | 1.06B | 1.05B | 991M | 880M | 887M | 856M | 632M | 811M | 792M | 744M | 770M | 894M | 1.03B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -1.38B | -1.28B | -1.46B | -1.91B | -1.42B | -1.49B | -1.03B | -809M | -772M | -836M | -908M | -1.59B | -1.04B | -3.58B | -2.59B | -942M | -814M | -748M | -229M | -461M | -829M | -768M | -617M | -464M | -529M | -286M | -94M | -150M | -155M | -590M | -243M |
| Pretax Income | -369M | 190M | 1.15B | 1.12B | 186M | -2.55B | -11.45B | 2.26B | 1.88B | 3.4B | 4.15B | 4.62B | 3.21B | -2.18B | -2.44B | -1.98B | -506M | -1.75B | -2.12B | 504M | 231M | -857M | -761M | -1.31B | -3.86B | -2.76B | 1.29B | 1.01B | 1.83B | 1.34B | 1.6B |
| Pretax Margin % | -0.63% | 0.35% | 2.13% | 2.12% | 0.38% | -8.53% | -66.06% | 4.93% | 4.23% | 7.97% | 10.34% | 11.26% | 7.53% | -8.15% | -9.84% | -8.25% | -2.28% | -8.8% | -8.91% | 2.2% | 1.02% | -4.14% | -4.08% | -7.5% | -22.16% | -14.53% | 6.53% | 5.67% | 10.46% | 7.88% | 9.19% |
| Income Tax | -43M | 79M | 308M | 299M | 59M | -555M | -2.57B | 570M | 472M | 2.11B | 1.57B | -2.99B | 330M | -346M | -569M | 0 | -35M | -284M | 0 | 0 | 0 | 0 | 0 | -80M | -1.34B | -994M | 508M | 350M | 719M | 527M | 513M |
| Effective Tax Rate % | 11.65% | 41.58% | 26.69% | 26.67% | 31.72% | 21.78% | 22.42% | 25.27% | 25.05% | 62.24% | 37.76% | -64.86% | 10.27% | 15.87% | 23.27% | 0% | 6.92% | 16.21% | 0% | 0% | 0% | 0% | 0% | 6.12% | 34.64% | 36.07% | 39.47% | 34.79% | 39.23% | 39.45% | 32.14% |
| Net Income | -326M | 111M | 846M | 822M | 127M | -1.99B | -8.88B | 1.69B | 1.41B | 1.28B | 2.58B | 7.61B | 2.88B | -1.83B | -1.88B | -1.98B | -471M | -1.47B | -2.12B | 504M | 231M | -857M | -761M | -1.23B | -3.51B | -1.76B | 813M | 985M | 1.31B | 985M | 1.02B |
| Net Margin % | -0.56% | 0.2% | 1.56% | 1.56% | 0.26% | -6.67% | -51.25% | 3.68% | 3.17% | 3.01% | 6.44% | 18.57% | 6.76% | -6.86% | -7.55% | -8.25% | -2.12% | -7.37% | -8.91% | 2.2% | 1.02% | -4.14% | -4.08% | -7.04% | -20.16% | -9.29% | 4.13% | 5.56% | 7.5% | 5.81% | 5.85% |
| Net Income Growth % | -157.5% | -86.88% | 2.92% | 547.24% | 106.37% | 77.57% | -626.99% | 19.41% | 10.14% | -50.39% | -66.04% | 164.05% | 257.14% | 2.24% | 5.2% | -320.17% | 67.92% | 30.69% | -520.24% | 118.18% | 126.95% | -12.62% | 38.03% | 65.02% | -99.26% | -316.73% | -17.46% | -25.04% | 33.4% | -3.05% | 508.38% |
| Net Income (Continuing) | -326M | 111M | 846M | 822M | 127M | -1.99B | -8.88B | 1.69B | 1.41B | 1.28B | 2.58B | 7.61B | 2.88B | -1.83B | -1.88B | -1.98B | -471M | -1.47B | -2.12B | 504M | 231M | -857M | -761M | -1.23B | -2.52B | -1.76B | 779M | 656M | 1.11B | 809M | 1.08B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 329M | 0 | 176M | 22M |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.49 | 0.17 | 1.24 | 1.14 | 0.19 | -3.09 | -18.36 | 3.80 | 3.03 | 3.90 | 4.81 | 11.07 | 3.93 | -17.04 | -14.99 | -15.83 | -3.79 | -13.37 | -21.41 | 4.51 | 2.34 | -13.93 | -12.69 | -20.78 | -60.46 | -30.60 | 13.47 | 16.76 | 20.13 | 14.41 | 14.78 |
| EPS Growth % | -162.82% | -86.29% | 8.77% | 500% | 106.15% | 83.17% | -583.16% | 25.41% | -22.31% | -18.92% | -56.55% | 181.68% | 123.06% | -13.68% | 5.31% | -317.68% | 71.65% | 37.55% | -574.72% | 92.73% | 116.8% | -9.77% | 38.93% | 65.63% | -97.58% | -327.17% | -19.63% | -16.74% | 39.69% | -2.5% | 500.81% |
| EPS (Basic) | - | 0.17 | 1.29 | 1.26 | 0.20 | -3.09 | -18.36 | 3.80 | 3.04 | 3.92 | 4.85 | 11.39 | 4.02 | -17.04 | -14.99 | -15.83 | -3.79 | -13.37 | -21.41 | 5.51 | 3.02 | -13.93 | -12.69 | -20.78 | -60.46 | -30.60 | 14.54 | 17.30 | 20.83 | 14.82 | 15.82 |
| Diluted Shares Outstanding | 662.61M | 661.86M | 721.3M | 719.67M | 655.12M | 644.01M | 483.89M | 444.27M | 465.66M | 491.69M | 556.1M | 687.36M | 734.02M | 107.64M | 125.12M | 124.98M | 124.38M | 109.81M | 96.74M | 111.68M | 98.6M | 61.79M | 59.96M | 59.11M | 58.08M | 57.58M | 60.37M | 58.77M | 65.26M | 68.35M | 68.72M |
| Basic Shares Outstanding | 662.19M | 660.49M | 657M | 653.61M | 650.35M | 644.01M | 483.89M | 443.36M | 464.24M | 489.16M | 552.31M | 668.39M | 717.46M | 107.64M | 125.12M | 124.98M | 124.38M | 109.81M | 96.74M | 91.51M | 76.57M | 61.79M | 59.96M | 59.11M | 58.08M | 57.58M | 55.92M | 56.95M | 63.08M | 66.48M | 64.24M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 10.56% | 13.17% | 15.44% | 8.67% | 3.65% | 5% | - | - | - | - | - | - | 305.16% | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying AAL stock.
For fiscal year 2025, American Airlines Group Inc. (AAL) reported total revenue of $54.63B. This represents a 214.6% increase compared to $17.36B in 1996.
American Airlines Group Inc. (AAL) is profitable, generating $111.0M in net income for the fiscal year ending 2025 with a net profit margin of 0.2%.
American Airlines Group Inc. (AAL) reported an operating income of $1.47B, resulting in an operating profit margin of 2.7%. This margin reflects the operational efficiency of the business before interest and taxes.
American Airlines Group Inc. (AAL) generated $10.47B in gross profit for the year, representing a gross profit margin of 19.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Labor costs and negative guidance
Metrics are mathematically derived from official filings.
Revenue Rebound Amid Capacity Expansion
AAL's Q2 2026 revenue surged 16.3% YoY to $16.7B, the strongest growth in the dataset, suggesting capacity additions are now meeting robust demand, per recent SEC filings.
The 16.3% YoY growth in Q2 2026 marks a sharp acceleration from the 0.4% growth in Q2 2025 and the 2.5% in Q4 2025, indicating a potential inflection in demand. This growth appears driven by both higher passenger volumes and ancillary revenue, though the sustainability is uncertain given the mixed forward guidance. Investors should monitor whether this pace can persist as industry capacity normalizes.
Gross Margin Volatility Masks Structural Pressures
Gross margin swung from 15.0% in Q1 2025 to 26.0% in Q1 2026, but Q2 2026's 20.7% remains below the 24.3% seen in Q2 2024, per company reports.
The wide quarterly swings in gross margin reflect fuel price volatility and seasonal demand patterns, but the underlying trend suggests a structural compression. Q2 2026's gross margin of 20.7% is 360 basis points below Q2 2024's 24.3%, indicating that cost pressures—likely from labor and maintenance—are eroding pricing power. This may imply that AAL's ability to pass through costs is limited, especially as new labor contracts take effect.
Operating Leverage Fails to Materialize
Despite a 16.3% revenue surge in Q2 2026, operating margin contracted to 2.7% from 7.9% in Q2 2025, indicating that SG&A and other costs are absorbing revenue gains, as reported in financial statements.
The 2.7% operating margin in Q2 2026 is a stark contrast to the 7.9% in Q2 2025, despite similar revenue levels. This suggests that operating leverage is not scaling with revenue, likely due to rising labor costs and other fixed expenses. The negative operating income in Q1 2026 (-$41M) further underscores the fragility of the cost structure, implying that any revenue shortfall could quickly push the company into losses.
Earnings Quality Clouded by One-Time Items
Q2 2026 net income of $71M on $16.7B revenue yields a razor-thin 0.4% net margin, with EPS of $0.11 versus $0.91 in Q2 2025, per income statement data.
The dramatic drop in EPS from $0.91 to $0.11 year-over-year, despite a 16.3% revenue increase, suggests that non-operating items or tax effects are distorting earnings. The absence of stock-based compensation in the data may indicate that reported net income is not fully burdened by SBC, but the negative EPS guidance for the full year implies that Q2's profitability may not be sustainable. Investors should scrutinize the quality of earnings, particularly any one-time gains or losses.
Labor Costs Threaten Margin Recovery
SG&A expenses rose 12.7% YoY in Q2 2026 to $603M, while gross profit only grew 2.9%, indicating that overhead is growing faster than core profitability, based on reported figures.
The 12.7% increase in SG&A in Q2 2026, compared to a 2.9% increase in gross profit, suggests that administrative and selling costs are outpacing revenue growth. This trend, combined with new labor agreements, may indicate that AAL's cost structure is becoming less flexible. The negative forward EPS guidance of ($0.70)–($0.10) implies that management expects these cost pressures to intensify, potentially keeping margins under pressure.
What Could Invalidate the Bull Case
Despite Q2 2026 revenue growth of 16.3%, the company's forward EPS guidance of ($0.70)–($0.10) suggests that management expects significant cost headwinds, potentially from labor and fuel, per recent guidance.
The disconnect between strong revenue growth and negative EPS guidance is a red flag. If labor costs rise as expected, the break-even load factor may increase, making it harder to sustain profitability. Additionally, AAL's gross margin of 20.7% in Q2 2026 is below peers like DAL (22.8%) and UAL (64.1% on a different cost structure), indicating a competitive disadvantage. Short-sellers might argue that AAL's revenue growth is not translating into bottom-line improvement, and the stock could be overvalued if the market is pricing in a recovery that may not materialize.