American Airlines aims to focus on premium customers for increased profitability starting in 2026. The airline projects nearly $2 improvement in adjusted earnings per share, with 7% to 10% more revenue expected in the first quarter of 2026. Despite a 6% stock drop, American posted $14 billion in revenue for the fourth quarter.

CEO Robert Isom is optimistic about American Airlines’ future, citing investments in customer experience, network, fleet, partnerships, and loyalty programs. The government shutdown negatively impacted fourth-quarter revenue by $325 million, but bookings have since returned. A winter storm this weekend led to significant flight cancellations and reduced capacity guidance for the first quarter of 2026.

American Airlines had to cancel over 9,000 flights due to the winter storm, marking the largest weather-related disruption in its history. The airline reported a 2.5% decrease in passenger unit revenue year over year, attributing the decline to the government shutdown. Premium product offerings saw strong performance, with premium unit revenue surpassing main cabin revenue in the fourth quarter.

Read more at CNBC: American Airlines (AAL) 4Q 2025 earnings