American Airlines Group Inc.
AAL Industrials Airlines
American Airlines Group Inc.’s revenue for fiscal 2025 (year ended December 2025) was $54.6 billion, up 0.78% from fiscal 2024. In the quarter to June 2026, revenue grew 16.3%, EPS fell 87.9%, free cash flow fell 175.7% and total debt fell 3.19%, each against the same quarter a year earlier. Dividend growth for five consecutive years, revenue growth for five.
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American Airlines Group Inc. (AAL) Altman Z-score
American Airlines Group Inc.'s Altman Z-score for fiscal 2025 is 0.66, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 0.66 | (0.09) |
| FY2024 | 0.75 | 0.01 |
| FY2023 | 0.74 | 0.13 |
| FY2022 | 0.61 | 0.33 |
| FY2021 | 0.28 | 0.74 |
| FY2020 | −0.46 | (1.37) |
| FY2019 | 0.91 | 0.05 |
| FY2018 | 0.86 | (0.32) |
| FY2017 | 1.18 | (0.22) |
| FY2016 | 1.40 | (0.15) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.20) | — | −0.24 | |
| Retained earnings / total assets | (0.11) | — | −0.15 | |
| EBIT / total assets | 0.02 | — | 0.08 | |
| Market value of equity / total liabilities | 0.15 | — | 0.09 | |
| Sales / total assets | 0.88 | — | 0.88 | |
| Altman Z-score | Distress zone | 0.66 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −1.56 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| RYAAY Ryanair Holdings PLC compare | 3.3× |
| CPA Copa Holdings, S.A. compare | 2.4× |
| LUV Southwest Airlines Co. compare | 2.2× |
| SKYW SkyWest, Inc. compare | 1.8× |
| LTM LATAM Airlines Group S.A. compare | 1.8× |
| ALK Alaska Air Group, Inc. compare | 1.1× |
| AERO Grupo Aeromexico SAB DE CV - Sponsored ADR compare | 0.8× |
| AAL American Airlines Group Inc. | 0.7× |
| ZNH China Southern Airlines Company Limited compare | — |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets