02376RAF9 Filings — American Airlines Group Inc. - FilingSpy
02376RAF9
American Airlines Group Inc.
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One of the world's largest airlines, American Airlines flies to more than 350 destinations from hubs in nine U.S. cities, operating mainline jets alongside its American Eagle regional partners. It was born in 1930 when about 80 small carriers, including one where Charles Lindbergh once flew airmail, were consolidated as American Airways before taking its current name in 1934. Its AAdvantage program, launched in 1981, is widely credited as the first modern frequent-flyer program, and it is a founding member of the oneworld Alliance.
Q2 2026 net income fell 88% to $71M as fuel costs rose 83% to $4.9B, offsetting 16% revenue growth.
Fuel costs more than doubled and erased the quarter's gain. Revenue rose 16.3% to $16.7B and fell 87.9% to $0.11 as aircraft fuel expense climbed 83.3% to $4.9B on a 77.1% higher average price, while passenger revenue grew 15.9%. The company is profitable but exposed to fuel prices it does not hedge.
Key takeaways
fell 88.1% to $71M and dropped 87.9% to $0.11 as aircraft fuel and related taxes rose 83.3% to $4.9B on a 77.1% higher average fuel price of $4.05 per gallon with no hedges in place.
Total operating revenues rose 16.3% to $16.7B, driven by a 15.9% increase in passenger on strong domestic and international demand, with up 10.0% and up 11.9%.
Other rose 17.9% to $1.2B, led by loyalty program co-brand cash payments of $1.8B, and cargo revenue grew 29.7% to $273M on a 22.5% increase in cargo ton miles.
Section summaries
Management's Discussion and Analysis
Q2 2026 net income fell 88% to $71M as fuel costs surged 83% to $4.9B, offsetting 16% passenger revenue growth.
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Total operating revenues rose 16.3% to $16.7B, driven by a 15.9% increase in passenger on strong domestic and international demand, with up 10.0% and up 11.9%.
fell 60.7% to $446M and was 2.7%, down 5.2 points from 7.9% a year earlier, while sequentially it rose from a -$41M operating loss in Q1 2026.
Salaries, wages and benefits increased 5.9% to $4.6B on contractual wage hikes and 3.4% more mainline employees; maintenance costs rose 10.8% on higher engine overhaul volume.
Total available liquidity was $11.3B at quarter-end, with $7.8B in unrestricted cash and short-term investments and $3.5B in undrawn revolving facilities; rose 10.1% to $25.3B from Q1.
What changed
Q2 2026 was -$351M versus $464M in Q2 2025 and $3,412M in Q1 2026, settling the prior watch item on whether Q2 would hold the Q1 print against $17.5B aircraft commitments through 2030.
Labor costs rose 5.9% to $4.6B with 34% of employees still under amendable agreements beyond signed deals, continuing the flagged 2026 wage watch.
Average fuel price was $4.05 per gallon unhedged, up from $2.75 in Q1 2026 and $2.29 a year earlier, with the ~$45M annual expense per $0.01 change sensitivity unchanged from prior filings.
The one-time Citi payment began amortizing in 2026, reflected in other rising 17.9% to $1.2B including loyalty co-brand cash of $1.8B.
Risk factors showed no material change from the 2025 10-K; the appeal and Flight 5342 lawsuits carried from prior filings were not updated this quarter.
What to watch
Q3 2026 after the -$351M Q2 print against $17.5B aircraft commitments for 2026–2030.
Average fuel price movement unhedged near $4.05/gal with ~$45M annual expense per $0.01 change.
Q3 2026 labor costs as 34% of employees remain under amendable agreements beyond signed pilot and flight attendant deals.
Resolution of the appeal and Flight 5342 lawsuits carried from prior filings.
Cargo grew 29.7% to $273M on a 22.5% increase in cargo ton miles, and other revenue rose 17.9% to $1.2B, led by loyalty program co-brand cash payments of $1.8B.
Aircraft fuel and related taxes jumped 83.3% to $4.9B due to a 77.1% higher average fuel price of $4.05/gallon and a 3.5% increase in consumption; the company has no fuel hedges.
Salaries, wages and benefits increased 5.9% to $4.6B on contractual wage hikes and 3.4% more mainline employees, while maintenance costs rose 10.8% on higher engine overhaul volume.
Total available liquidity was $11.3B at quarter-end, with $7.8B in unrestricted cash and short-term investments and $3.5B in undrawn revolving facilities.
During H1 2026, the company repaid $1.0B of 8.50% senior secured notes, refinanced term loans, and issued $2.7B in EETCs and equipment loans to finance aircraft and engines.
Quantitative and Qualitative Disclosures About Market Risk
AAG and American remain fully exposed to fuel prices with no hedges, and disclose sensitivity to interest rates and foreign currencies.
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As of June 30, 2026, no fuel hedging contracts were outstanding, and the current policy is not to hedge fuel consumption, leaving the company fully exposed to fuel price fluctuations.
A one-cent-per-gallon increase in aircraft fuel price would raise 2026 annual fuel expense by approximately $45 million based on forecasted consumption.
The company does not have a foreign currency hedge program, with largest exposures to the Euro, Canadian dollar, British pound sterling, and various Latin American currencies, primarily the Brazilian real.
A 100-basis-point increase in annual interest rates would increase annual on variable-rate debt by approximately $150 million and increase annual interest income on short-term investments by approximately $80 million, based on June 30, 2026 balances.
See Note 12 to each of AAG and American’s Condensed Consolidated Financial Statements in Part I, Item 1A and Part I, Item 1B, respectively, for information on legal proceedings.
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See Note 12 to each of AAG and American’s Condensed Consolidated Financial Statements in Part I, Item 1A and Part I, Item 1B, respectively, for information on legal proceedings.
There have been no material changes in our risk factors as previously disclosed in Part I, Item 1A in our 2025 Form 10-K. The risks in our 2025 Form 10-K are not the only risks facing AAG and American. Additional risks and uncertainties not currently known to us, or that we curr…
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There have been no material changes in our risk factors as previously disclosed in Part I, Item 1A in our 2025 Form 10-K. The risks in our 2025 Form 10-K are not the only risks facing AAG and American. Additional risks and uncertainties not currently known to us, or that we currently deem to be immaterial, could also materially adversely affect our business, financial condition or future results.