The numbers may look uninspiring, but American Airlines seems to have finally found a message Wall Street believes.
American Airlines Reports $114 Million Q3 Loss — But Wins Investor Confidence
American Airlines posted a third-quarter 2025 net loss of $114 million on revenue of $13.69 billion, narrowing its loss from $149 million in Q3 2024, but down sharply from a $599 million profit in Q2 2025. CEO Robert Isom highlighted improved reliability and cost discipline, arguing that the airline’s plan is starting to take hold.
Wall Street listened and the market appears to be rewarding that discipline. Shares rose after the report as American raised its full-year profit outlook, and investors appeared to give management credit for focusing on reliability, premium revenue, and measured capacity. As View From The Wing noted, the real story isn’t that American made money (it didn’t) but that management finally articulated a coherent path forward that investors found credible.
My Thoughts
I’ll give American some credit: this wasn’t a financial win, but it was a narrative win, reminding me of that line from Stephen Schwartz’s Popular (“It’s not about apitude, it’s the way you’re viewed…”). The airline is finally leaning into what it can better control, including operational reliability, premium yield, and cost management, instead of chasing market segments and growth in which there was not adequate revenue or demand.
But let’s keep perspective. A narrower loss is progress, not victory. Debt is still heavy, and any wobble in fuel or the economy could erase these gains. The next test is simple: repeat this discipline for multiple quarters and see if full-year profit projections hold. If American can stack consistent execution on top of this quarter’s messaging, investor patience might finally turn into durable confidence.
But I do view the investor class as fickle and opportunistic. How much of the stock gain was due to short selling? Why was United’s stock pummeled when its profit (not loss!) exceeded expectations but AA’s stock surged despite posting a loss? I’ll answer my own question: the aviation industry is all about expectations. AA was expected to do even worse while United was expected to do even better. Even so, I still find it somewhat bemusing.
CONCLUSION
American Airlines lost more money, but gained credibility. In a business where sentiment swings as fast as schedules, that’s not nothing. Now the airline has to prove that discipline isn’t a one-quarter headline, but the new normal. I’m rooting for AA and hope for the best. But let’s see how the next several months play out…
image: American Airlines
Still under $14 a share and a long term loser for investors. Other than speculators and gamblers, no one takes them serious as a long term investment. And the short sellers still love the opportunity AAL presents.
History has proven they don’t have the people in place to become a consistently profitable company. I argue bankruptcy is a better bet than $30 a share happening again.
That said I had an incredible FA crew on a segment this week but the other flight was filled with ones that felt like being there was doing the passengers a favor. The AA experience in a nutshell.
That was quite a calm, rational comment (albeit a little anti-worker, but, you were polite about it, at least.)
Now, what’s the deal with the fella who follows you around and seems to hate you?
Thank you Dave. It gets messy sometimes, but I appreciate both yourself and Chi Hsuan adding value and controversial opinions. It’s difficult when we devolve a lot of nasty mud slinging. I also miss Aaron, and hope that you can be not scary because he also adds great counterweight here.
Wall Street will believe almost anything, then dump you as soon as they hear a rumour that the wind just might possibly change sometime.
In most cases, any apparent correlation between the financial performance of a corporation and its stock price is purely coincidental.
Apparently, analysts and investors are likely to be closely monitoring the performance of the world’s third-largest airline by fleet size when it next releases its financial results.
Dr. Güntürk Üstün
I was surprised you didn’t include the INfamous never lose money again quote! Then I realized I was reading Matthewlax and not vftw!
Good to check both, just in case! Meow.