American Airlines recorded its largest weather-related operational disruption in company history during Winter Storm Fern, canceling more than 9,000 flights over the quarter and over 10,000 system-wide since the event began. On Wednesday alone it scrubbed over 400 departures, representing roughly 15% of its planned schedule as of 6 a.m. ET, while competitors reported fewer than a dozen cancellations. Dallas–Fort Worth International, the carrier’s primary hub, endured nearly six hours of ice pellets and over three hours of snow, with four inches accumulating in 48 hours, straining an airport infrastructure not built for prolonged winter events. The airline estimates the storm will cost between $150 million and $200 million and has reduced first-quarter capacity by approximately 1.5 percentage points.

The Association of Professional Flight Attendants highlighted that cabin crew bore the brunt of the operational breakdown, with many employees stranded overnight without hotel accommodations and plagued by disrupted work sequences. In response, American Airlines announced double pay for any flight attendants who flew on Wednesday to incentivize staffing and expedite recovery. The carrier acknowledged challenges in mobilizing airport and airline personnel to impacted hubs and stated that day-to-day operations were making “considerable progress” as roadways thawed and runways cleared.

In its quarterly earnings release, American reported record fourth-quarter revenue of $14.0 billion and full-year revenue of $54.6 billion despite a $325 million revenue reduction from the government shutdown. Net income for the quarter reached $99 million, or $0.16 per diluted share, below analyst consensus but marking a significant improvement from prior-year losses. The carrier reduced total debt by $2.1 billion in 2025 and ended the year with $9.2 billion of available liquidity. Premium cabin performance remained robust, and early 2026 bookings showed double-digit year-over-year revenue growth in the first three weeks, driven by corporate and premium leisure travel.

Looking ahead, American Airlines guided full-year adjusted earnings per share of $1.70 to $2.70 and expects free cash flow exceeding $2 billion. First-quarter capacity is projected to grow 3% to 5%, with total revenue up 7% to 10% year-over-year, notwithstanding the storm’s near-term distortion. The airline plans to expand premium seating through fleet retrofits and new deliveries, roll out free high-speed satellite Wi-Fi for loyalty members, and re-bank Dallas–Fort Worth into a 13-bank schedule to improve on-time performance. Management reiterated confidence in its loyalty program growth and partnership initiatives, including a new 10-year Citi co-branding agreement, as catalysts for long-term shareholder value.