American Airlines vs United Airlines: Revenue, Profit and Business Model
American Airlines reported $54.6B of revenue in FY2025 and $111M of net income. United Airlines reported $59.1B of revenue in FY2025 and $3.4B of net income.
Latest financial snapshot
American Airlines
- Latest revenue
- $54.6B (FY2025)
- Net income
- $111M
- Net margin
- 0.2%
- Revenue growth
- +3.5% a year, FY2016–FY2025
United Airlines
- Latest revenue
- $59.1B (FY2025)
- Net income
- $3.4B
- Net margin
- 5.7%
- Revenue growth
- +5.5% a year, FY2016–FY2025
Financial summary
American Airlines
American Airlines operates in a capital-intensive industry with thin margins and direct exposure to fuel prices and demand shocks. In 2025 it produced $54.6 billion of operating revenue, $1.5 billion of operating income and $111 million of net income, after a government shutdown cut fourth-quarter revenue by about $325 million. The balance sheet is the binding constraint: total debt was $36.5 billion and net debt $30.7 billion at December 31, 2025, down $2.1 billion during the year, with net interest expense of $1.7 billion and total available liquidity of $9.2 billion. Management expects to reach its goal of less than $35 billion of total debt during 2026, a year ahead of schedule, and guided 2026 adjusted earnings to between $1.70 and $2.70 per diluted share with free cash flow above $2 billion.
United Airlines
United's revenue grew from $43.3 billion in 2019 to a record $59.1 billion in 2025, and net income reached $3.4 billion in 2025 against $3.1 billion in 2024. Operating cash flow was $8.4 billion in 2025. In 2026 the story is fuel: after oil prices spiked in March, United cut full-year adjusted EPS guidance to $7-$11, then raised it to $9-$11 in July after Q2 revenue rose 16% to $17.7 billion and yields climbed 12%. Q2 fuel expense was up $2.3 billion (84%), and the company said it expected to recover all of the increase through fares by Q4. Management is targeting an investment-grade credit rating in 2026.
Revenue and profit by year
American Airlines
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $54.6B | $111M | 0.2% | +0.8% | Source |
| FY2024 | $54.2B | $846M | 1.6% | +2.7% | Source |
| FY2023 | $52.8B | $822M | 1.6% | +7.8% | Source |
| FY2022 | $49B | $127M | 0.3% | +63.9% | Source |
| FY2021 | $29.9B | -$2B | -6.7% | +72.4% | Source |
| FY2020 | $17.3B | -$8.9B | -51.2% | -62.1% | Source |
| FY2019 | $45.8B | $1.7B | 3.7% | +2.8% | Source |
| FY2018 | $44.5B | $1.4B | 3.2% | +4.5% | Source |
| FY2017 | $42.6B | $1.3B | 3.0% | +6.2% | Source |
| FY2016 | $40.1B | $2.6B | 6.4% | — | Source |
United Airlines
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $59.1B | $3.4B | 5.7% | +3.5% | Source |
| FY2024 | $57.1B | $3.1B | 5.5% | +6.2% | Source |
| FY2023 | $53.7B | $2.6B | 4.9% | +19.5% | Source |
| FY2022 | $45B | $737M | 1.6% | +82.5% | Source |
| FY2021 | $24.6B | -$2B | -8.0% | +60.4% | Source |
| FY2020 | $15.4B | -$7.1B | -46.0% | -64.5% | Source |
| FY2019 | $43.3B | $3B | 7.0% | +4.7% | Source |
| FY2018 | $41.3B | $2.1B | 5.1% | +9.5% | Source |
| FY2017 | $37.7B | $2.1B | 5.7% | +3.2% | Source |
| FY2016 | $36.6B | $2.2B | 6.1% | — | Source |
Where the revenue comes from
American Airlines
- Passenger travel~83.5%
Fares paid for seats across Flagship Suite, Flagship Business, Premium Economy, Main Cabin Extra, Main Cabin and Basic Economy, plus baggage and other inflight services, on mainline and American Eagle regional flights. Passenger travel revenue was $45.6 billion in 2025 out of $54.6 billion of total operating revenue, and total passenger revenue including loyalty redemptions was $49.6 billion.
- Loyalty revenue (AAdvantage)~13.8%
AAdvantage produced $7.5 billion of revenue in 2025: $4.0 billion of mileage redemptions recognized inside passenger revenue and $3.5 billion of marketing-services revenue recognized in other revenue. Cash payments from co-branded credit card and other partners were $6.2 billion. Citibank is the exclusive U.S. co-brand issuer from 2026 under a 10-year agreement, and members also earn with more than 1,000 non-flight partners.
- Cargo~1.5%
American Airlines Cargo carries freight and mail in the belly holds of passenger aircraft rather than in dedicated freighters. Cargo revenue was $839 million in 2025, up 4.3 percent from $804 million in 2024.
- Other revenue~1.2%
Other revenue of $640 million in 2025 covers items outside passenger, loyalty and cargo revenue, including maintenance and ground handling work for third parties and other commercial activities.
United Airlines
- Passenger tickets
- Premium cabins
- Basic Economy
- MileagePlus and co-brand revenue
- Cargo
- United Club memberships
- Baggage and seat fees
Business model and strategy
American Airlines
How it makes money
The business model of American Airlines is more complex than selling plane tickets. American runs a hub-and-spoke network through nine hubs, and the flying itself carries thin margins: in 2025 the company produced operating income of $1.5 billion on $54.6 billion of revenue, and net income of $111 million after $1.7 billion of net interest expense.
Growth strategy
American frames growth around four commercial pillars: a more consistent and elevated customer experience, more productive use of its network and fleet, partnerships that deepen loyalty, and better sales, distribution and revenue management.
Competitive advantage
American's advantages are hub density and loyalty scale. At Dallas Fort Worth it flies more than 930 departures on a peak day, moving more than 30 percent of its daily connecting customers and connecting bags through that one airport, and it is reorganizing the schedule into 13 banks from April 2026 to protect connections.
United Airlines
How it makes money
United makes money by filling a hub-and-spoke network. Domestic and regional flights feed passengers into seven U.S. hubs, where they connect to long-haul routes across the Atlantic, Pacific and Latin America. Ticket sales are the core: passenger revenue was $53.4 billion of the $59.1 billion total in 2025.
Growth strategy
United is investing in premium seating, larger aircraft, international routes, operational reliability, MileagePlus, airport clubs, digital service, Starlink connectivity, and network depth at core hubs.
Competitive advantage
United's advantage is its hub network, international route breadth, Star Alliance connectivity, premium-cabin expansion, MileagePlus loyalty base, corporate account strength, and major positions at airports such as Chicago O'Hare, Newark, Denver, Houston, San Francisco, Washington Dulles, and Los Angeles.
Questions about American Airlines vs United Airlines
Which company has higher revenue — American Airlines Group or United Airlines Holdings, Inc.?
American Airlines Group reported $54.6B (FY2025), while United Airlines Holdings, Inc. reported $59.1B (FY2025). By last reported revenue, United Airlines Holdings, Inc. is the larger business, with American Airlines Group reporting a smaller revenue base.
What is the market cap of American Airlines Group vs United Airlines Holdings, Inc.?
American Airlines Group's market capitalisation stands at $8.9B, while United Airlines Holdings, Inc.'s is $36.1B. United Airlines Holdings, Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to American Airlines Group.
Which is more financially efficient — American Airlines Group or United Airlines Holdings, Inc.?
American Airlines Group generates $393k / employee in revenue per employee, while United Airlines Holdings, Inc. generates $522k / employee. United Airlines Holdings, Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do American Airlines Group and United Airlines Holdings, Inc. make money?
American Airlines Group and United Airlines Holdings, Inc. generate revenue in fundamentally different ways. American Airlines Group: The business model of American Airlines is more complex than selling plane tickets. United Airlines Holdings, Inc.: United makes money by filling a hub-and-spoke network.
Which company is valued higher relative to revenue — American Airlines Group or United Airlines Holdings, Inc.?
On a price-to-sales (P/S) basis, American Airlines Group trades at 0.2x P/S and United Airlines Holdings, Inc. at 0.6x P/S. United Airlines Holdings, Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to American Airlines Group. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is American Airlines Group bigger than United Airlines Holdings, Inc.?
By last reported revenue, United Airlines Holdings, Inc. ($59.1B (FY2025)) is the larger company compared to American Airlines Group ($54.6B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the American Airlines vs United Airlines overview