American Airlines eyes wealthier flyers as the government shutdown drags down earnings

American Airlines stock fell at the market open on Tuesday even as the company reported record revenue figures. The airline made clear it’s betting that the path to larger and steadier profits travels through the high end of the market.

Here's what to know.

'A premium global airline'

For 2025, American delivered its highest revenue haul ever at nearly $55 billion, but modest profits. That points to both strong demand and the volatility of earnings typical of the industry, at least historically speaking. Fourth-quarter revenue came in at a similarly record $14 billion, up over 2024’s results despite a roughly $325 million hit from the government shutdown.

The problem? Profits remained thin. American's adjusted net income totaled $111 million for the full year and $99 million in the fourth quarter. So no wonder the pivot to premium over volume-driven growth. For American, as for other major airlines, premium seating continues to outperform the main cabin. Management understandably is pushing further into “elevated” experiences, while also pointing to a 7% year-over-year increase in AAdvantage enrollments (the highest in the airline's history), alongside continued growth in co-branded credit card spending. The latter rose 8% in 2025.

So the picture is clear, even if the skies are not, with a major winter storm and extreme cold looming over the east coast. As the economy moves deeper into its k-shaped trend, wealthy travelers and loyalty-driven sales are the order of the day.

'The world’s most important aviation market'

American’s leadership argues that its network gives it a natural advantage in this premium shift. Per the release: “American operates the strongest network in the U.S. — the world’s most important aviation market — with eight hubs in the 10 largest metropolitan areas. This network, combined with the global reach of its partners, connects more people to more places than any other airline.”

Central to that strategy is Dallas-Fort Worth, where “the company has increased its investment in the new Terminal F at DFW, positioning that airport to become the largest single-carrier hub in the world and deliver unmatched connectivity for customer.”

The bet is that this vast network, "unmatched connectivity," premium cabins, upgraded lounges, and fortress hubs can drive higher margins and less-volatile earnings, even as the broader system adapts around policy-driven uncertainty. Delta has already shown that this model can work, effectively transforming premium demand and massive loyalty programs into a engine that subsidizes the rest of the airline. Now American is attempting a similar move, with fewer cheap seats, more “elevated” ones, and a growing reliance on the customers willing to pay for comfort.

Still, with shares falling, it seems Wall Street is adopting a "wait and see" attitude as to whether this flight to premium pays off.