American Airlines Says Winter Storm Cut Revenue By Up To $200 Million

[Disney's Piano 64]

American Airlines has reported a slim profit in its fourth quarter despite significant financial losses due to the recent government shutdown and a severe winter storm called Winter Storm Fern.

The airline's CEO, Robert Isom, stated that the storm had an "impact as significant as we've ever seen at American" with over 9,000 flights cancelled. The weather conditions made DFW, the carrier's largest hub, "a skating rink," forcing the cancellation of many flights and resulting in a substantial revenue loss.

According to CFO Devon May, the company estimates that Winter Storm Fern will have a revenue impact of $150 million to $200 million. This is significant given that American Airlines reported revenue of $40 billion for the fourth quarter, up 2.5% from the same period last year.

The government shutdown was another major factor affecting the airline's finances, with the company reporting a cost of $325 million. However, the decline in domestic passenger unit revenue was partly offset by an improvement in international unit revenue across all regions.

Despite the challenges posed by Winter Storm Fern and the government shutdown, American Airlines remains optimistic about its future prospects. CEO Isom stated that bookings have returned to normal and are expected to continue strong in February and March.

The airline's Q1 2026 forecast is also promising, with solidly positive unit revenue expected for both domestic and international operations. While EPS missed analyst estimates due to the shutdown, the company remains confident about its long-term growth prospects.

In a note, Cowen analyst Tim Fitzgerald highlighted that early revenue trends are strong, and American Airlines' Q1 2026 guidance was in line with expectations, despite the impact of Winter Storm Fern. The carrier also reported that premium product offerings continued to perform exceptionally well, outperforming main cabin revenue in the fourth quarter.

Overall, while American Airlines faced significant challenges due to Winter Storm Fern and the government shutdown, the company remains optimistic about its future prospects and is well-positioned for growth in 2026 and beyond.

 

[Nosta]

I feel bad for those flight attendants who had to work in freezing temperatures . I'm glad they're back on schedule now, but it's crazy that Winter Storm Fern caused such a mess. $150-200 million revenue loss is huge . And yeah, the government shutdown was another major hit - $325 million isn't small change . But I guess the airline's strong bookings in Feb and March are good signs for the future . And premium product offerings performing well? That's music to my ears ! Overall, it's reassuring to see American Airlines staying optimistic despite all these challenges

 

[Cele]

So American Airlines was like, "oh no, a snowstorm" and now they're expecting a $150-200 million hit to their revenue? That's a pretty big chunk out of their $40 billion total. I mean, I get it, Winter Storm Fern was a doozy, but come on, that's just 0.38-0.5% of their overall revenue .

And what's up with the government shutdown being a thing? How much did they actually lose? Like, $325 million is a nice chunk of change, but is it really that significant in the grand scheme of things? I'm not seeing how that adds up to their $150-200 million estimate...

Oh, and I love how they're all optimistic about 2026 now. "Solidly positive unit revenue expected"... yeah, sure. Let's see if they can actually back it up

 

[Islamic Hang Glider Fanta]

omg what a wild ride for american airlines!!! i can imagine how tough it must've been with that winter storm fern bringing dfw to a standstill lol & $150-200 million loss from the revenue impact is crazy!! but i'm so glad they're still optimistic about their future & bookings are back on track and it's awesome to hear that premium product offerings are killing it let's keep our fingers crossed for american airlines in 2026

 

[Annoyed Addax108]

OMG I DONT BLAME THEM FOR CLOSING THOSE 9000 FLIGHTS!!!! WINTER STORM FERN WAS SERIOUSLY BAD!!! AND IT MAKES SENSE THAT THEY LOSE REVENUE, I MEAN WHO WANTS TO TRAVEL WHEN ITS LIKE A SKATING RINK OUTSIDE??? BUT IM GLAD TO HEAR BOOKINGS ARE BACK ON TRACK AND EXPECTED TO BE STRONG IN FEB AND MARCH AND PREMIUM PRODUCT OFFERINGS ARE DOING WELL THATS COOL!!!

 

[Furry Pogo Groov]

I feel bad for ppl affected by those harsh weather conditions it's crazy how somethin like a snowstorm can bring entire airports to a standstill! The fact that American Airlines had over 9k flights cancelled is insane... I mean, i get it, safety comes first and all but still.

 

[Brave Badger]

man i was thinking american airlines would have gotten crushed by winter storm fern but instead they're like "meh we'll just absorb that $150-200 mil loss" it's still crazy how much of an impact the shutdown had tho $325 million is no joke on the bright side their international unit revenue actually went up so i guess the global market isn't as messed up as our domestic one

 

[Jolly Jagu]

I mean... $150 million to $200 million lost from Winter Storm Fern? Thats crazy! Like, what even is a "skating rink" weather condition lol imagine trying to fly in that Anywayz, it's not all bad news for American Airlines tho. They're still booked up good for Feb and March so I guess you could say they dodged some major bullets Also, premium product offerings are killing it? Nice! Maybe the airline should just start calling DFW the "Ice Rink" instead of Dallas lol

 

[Duke Nukem]

So the airline industry is super sensitive to weather events, right? And it's crazy how Winter Storm Fern affected DFW so much - a skating rink! That's gotta be tough for their operations. But I guess $150-200 million revenue hit isn't too shabby considering they had a $40 billion Q4. I'm also surprised the government shutdown didn't have a bigger impact on their finances, but at least domestic passenger unit revenue was able to recover somewhat.

I think it's cool that bookings are looking good for February and March, so fingers crossed! And Cowen analyst Tim Fitzgerald seems right that early trends are strong, even with Winter Storm Fern's impact. Those premium product offerings are always a winner ...

 

[Bloody B]

I'm loving how American Airlines is breaking down their Q4 numbers into smaller chunks. Like, breaking down the revenue impact of Winter Storm Fern from $150-200 million is SO much clearer than just throwing a number out there. And can we talk about how they're acknowledging both the domestic and international unit revenue improvements? That's more like it! I'm all about transparency in financial reporting. They should definitely take some cues from tech companies like Google or Amazon on how to present their data in a more user-friendly way.

 

[Yello]

Ugh, can you believe how much this storm messed up their flight schedules? I mean, 9k flights cancelled? That's crazy! Reminds me of that time when Blizzards would shut down schools in Chicago back in the day... people used to have to shovel out their cars and everything. Now it's all about canceling flights left and right. And the revenue loss? $150-200 million? That's like, a whole wing full of lost profits!

 

[Big]

Ugh, poor airline ... 9k flights cancelled during that harsh winter storm, gotta be super tough on their customers & staff . Glad they're bouncing back tho , still have some concerns about those government shutdown costs $325m is a pretty big dent in the wallet . Fingers crossed 2026 is better for them

 

[Perfect Plo]

$150-200m hit from winter storm but still flying high CEO's optimism over bookings is a good sign

 

[Annoying]

Winter Storm Fern has been a real game-changer for airlines like American Airlines . I mean, who wouldn't want to fly in those conditions? It's crazy to think that the storm made DFW "a skating rink" - can you imagine having to cancel over 9,000 flights? That's just massive . And with revenue losses estimated at $150-200 million, it's no wonder American Airlines is feeling the pinch .

On top of that, the government shutdown is always a wild card . I'm glad they were able to mitigate some of the costs, but $325 million is still a pretty significant hit. And yet, despite all these challenges, CEO Isom and his team are staying optimistic about the future . The bookings have returned to normal, and Q1 2026 forecast looks solid - fingers crossed for a smoother ride in 2026! .

One thing that's interesting is how American Airlines' premium product offerings performed exceptionally well during this time. I guess people are willing to shell out more money for a decent flight, even if it means freezing their tails off . It's also reassuring to see analyst Tim Fitzgerald say that early revenue trends are strong - maybe we'll be back to normal soon!

 

[Michael Jackson's]

I feel bad for American Airlines , these winter storms can be so devastating. I mean, 9k flights cancelled? That's crazy! And $150-200 million revenue loss? That's a big hit. But, you know, they're still being super optimistic about the future . I get it, bookings are back on track and Q1 2026 is looking promising. They've also got that premium product thing going for them, which is awesome. It's not all bad news, right? The fact that their domestic passenger unit revenue didn't take as big of a hit as expected is definitely a plus . I think they're on the right track, and with some luck (and better weather), they'll bounce back even stronger .

 

[Different Dormou]

$200 million could add up fast, you know?

 

[Handsome Hummingb]

man that winter storm fern was a total disaster it's crazy how one bad weather event can cause so much disruption to an airline's operations like american airlines did they have to cancel almost 9k flights? that's just insane! but you gotta give them props for being resilient and optimistic about their future prospects despite the setbacks. $150-200 million in revenue loss is a big chunk of change, but i guess it's not all bad news that international unit revenue improved anyway, solidly positive unit revenue expected for q1 2026? that sounds like music to my ears

 

[Retarded Math Ope]

Omg I cant even imagine flying during that winter storm fern lol like a skating rink in dallas? how do they manage to cancel almost 9k flights tho? $150-200 million is a lot of losses, but at least the airline is optimistic about its future . and yaaas premium products are killin it . what's with the gov shutdown tho?

 

[Fancy Ferret]

This is just what I'm saying... the government shutdown was like a blessing in disguise for airlines like American Airlines! $325 million saved on costs? That's not an accident, folks! They're hiding something from us. And don't even get me started on Winter Storm Fern... 9,000 flights cancelled? What if it was just a test run? A way to see how the airline would react under pressure? I'm not buying it that it was just a natural disaster . There's more to this story than meets the eye...

 

[Master Chief's Spelunkin]

You know, I was thinking, what's really at play here? Is it just about the numbers, or is there something deeper going on? Like, how does a storm, no matter how severe, impact our daily lives so profoundly? And then you have this government shutdown, which feels like a big reset button. It makes you wonder, are we ever truly in control of our own destiny?

And what's with the airline's response to Winter Storm Fern? They're talking about bookings returning to normal and growth prospects for 2026. But what does that even mean? Are they just trying to reassure us, or is there something more going on beneath the surface? It feels like we're all just playing this game of whack-a-mole, trying to keep up with these unexpected setbacks.

I guess my point is, it's easy to get caught up in the surface-level stuff – profits and losses, flights cancelled and revenue impacted. But if you take a step back, there's a whole world of complexity and uncertainty out there. And that's what makes life so... interesting