American Airlines Group Inc (NASDAQ:AAL, XETRA:A1G) shares rose about 5% after the carrier reported first-quarter results that beat Wall Street expectations for both revenue and adjusted losses, alongside a stronger-than-expected outlook for the second quarter.
The company reported an adjusted loss of $0.40 per share for the first quarter of 2026, compared with analyst expectations for a $0.47 loss per share.
Revenue came in at $13.91 billion, slightly ahead of the $13.79 billion forecast.
The company said it ended the quarter with total debt of $34.7 billion, its lowest level since mid-2015, and held $10.8 billion in liquidity.
The results were driven by record first-quarter revenue, with total revenue up 10.8% year over year.
American highlighted strength in premium demand, corporate travel recovery, and international performance, particularly across its Atlantic operations, which saw passenger unit revenue increase 16.7%.
CEO Robert Isom said the company continued to see strong demand across its network, noting improving customer satisfaction and operational investments aimed at enhancing reliability and premium offerings.
“Even in a volatile operating environment, our pretax margin improved by nearly 2 points year over year,” Isom said, adding that the airline expects modest profitability for 2026 based on current fuel assumptions and demand trends.
Looking ahead, American guided Q2 adjusted earnings per share between a loss of $0.20 and breakeven, with revenue expected to rise 13.5% to 16.5% year over year.
The company also pointed to continued expansion of premium seating, loyalty program growth, and investments in airport infrastructure and lounges as key drivers of its strategy.