Dive Brief:
- American Airlines’ premium unit revenue outpaced main cabin revenue by seven points in the fourth quarter of 2025, CFO Devin May said during an earnings call Tuesday.
- The carrier will lean into the strength of its premium business by growing the number of premium seats at twice the rate of main cabin seats in its new and renovated aircraft during the coming years,
- “With these investments in our existing fleet, along with our new deliveries, we expect our premium seat growth will outpace our non-premium offering each year for the remainder of the decade,” May said during the call.
Dive Insight:
Premium and loyalty were to be a bright spot for American, and are expected to fuel its ambitions in the coming year following a mixed financial quarter.
The airline achieved a record-high net promoter score for on-time customers during the fourth quarter, according to Isom. The company will continue to invest in its experience in 2026 to help it differentiate from the competition.
Enrollments in American’s AAdvantage loyalty program grew 7% year over year, which resulted in the highest number of annual enrollments in the airline’s history, according to Isom. Spending on American Airlines co-branded credit cards was up 8% year over year.
“As we continue to grow the program it generates loyalty to American, and that's going to translate into higher unit revenue as well,” COO Nat Pieper said.
AAdvantage has close ties to American’s higher-tier offerings, as the airline stopped offering loyalty points to fliers with basic economy tickets in December. Premium and main cabin customers still earn points.
Revenue was up 2.5% year over year to $14 billion in the fourth quarter of 2025, according to a company earnings report. However, net income was down 83.2% to $99 million for the quarter.
The weak results, which were below expectations, were due to the government shutdown that disrupted revenue in November and December, May said. The shutdown was responsible for approximately $325 million in lost revenue for the quarter.
American expects premium unit revenue to remain strong in 2026, and it will court corporate customers as well, according to Isom. The company will continue to evaluate its premium offerings throughout the coming year.
“We see a lot of depth in the premium market, and we're really excited about American’s product evolving and the customer experience investments we're making are all tuned to that premium traveler,” Pieper said.
