American Airlines is bracing for a first-quarter loss following a severe winter storm that forced the major US carrier to cancel some 9,000 flights over four days.
While all US airlines were impacted by the storm to some degree, with Delta Air Lines and United Airlines both suffering from major network disruptions, American appears to be the hardest-hit carrier.
“The impact of the storm is as significant as we’ve ever seen at American Airlines,” Robert Isom, American’s chief executive, said on 27 January. “Snow and freezing rain have significantly reduced operations, especially at [Dallas-Fort Worth] and Charlotte – our largest hubs – for multiple days, making this the largest weather-related disruption in our history.”
Isom adds that American is expecting at least two more days of unusually high numbers of flight cancellations before returning to normal operations.
The snow and freezing rain that descended across much of the country starting on 24 January will cut into American’s first-quarter financial results, according to chief financial officer Devon May.
“With this first-quarter guidance, inclusive of the impact of winter storm Fern, we expect to deliver an adjusted loss per diluted share of between 10 cents and 50 cents,” May says. “The guidance range for the quarter is slightly wider than what we traditionally use as we continue to evaluate the impact of this extraordinary weather event for the full year.”
American’s anticipated first-quarter adjusted loss of $.10-.50 per share, would translate – based on American’s current number of outstanding shares – to an adjusted loss of $66-$330 million.
Additionally, American estimates a revenue impact of $150 million to $200 million as a result of the massive snowstorm.
“Our guidance always includes a completion factor assumption for winter weather,” May says. “But… the impact of this storm is unlike anything we have ever experienced.”
American expects first-quarter capacity as measured in available seat kilometres to increase year-on-year by 3-5%, boosted by stronger schedules in the carrier’s hubs – especially in Miami, Philadelphia and Phoenix.
First-quarter revenue, meanwhile, will be up 7-10% year-on-year, according to American’s forecast. That will be driven by improvements in domestic demand and corporate travel.
“This is inclusive of approximately a point-and-a-half impact from winter storm Fern,” May says.
The rough kick-off to 2026 is not what American executives had hoped for after another disappointing year, relative to the financial performances of Delta and United.
For the full year of 2025, American posted a paltry $111 million profit, while Delta and United raked in profits of $5 billion and $3.4 billion, respectively.
