American Airlines Group Inc. has announced its financial results for the fourth quarter and full year of 2024, marking a significant milestone with record revenues and robust financial performance. The company reported an impressive revenue of $13.7 billion for the fourth quarter and $54.2 billion for the entire year. This success was driven by strategic adjustments in capacity, strong demand, and operational resilience. Additionally, American Airlines unveiled a new 10-year co-branded credit card partnership with Citi, which is expected to enhance value for both companies and their customers. The airline also achieved substantial debt reduction and generated record free cash flow, positioning it well for future growth.
One of the key highlights of American Airlines' performance in 2024 was its record-breaking revenue. The company's fourth-quarter revenue reached $13.7 billion, contributing to a total annual revenue of $54.2 billion. This achievement was underpinned by the airline's strategic decisions to optimize capacity and respond effectively to market demands. Unit revenue increased by 2.0% compared to the previous year, demonstrating the strength of American Airlines' commercial strategies. Moreover, the airline outperformed its competitors in several key metrics, including domestic, Atlantic, Pacific, and overall passenger unit revenue. These accomplishments reflect the company's commitment to delivering exceptional service and maximizing shareholder value.
American Airlines also secured a significant partnership with Citi in December 2024. This agreement makes Citi the exclusive issuer of the AAdvantage® co-branded credit card portfolio in the U.S., starting from 2026. The collaboration is anticipated to create a more extensive loyalty and rewards ecosystem for both AAdvantage® members and Citi-branded cardholders. Cash remuneration from co-branded credit cards and other partners surged by 17.0% in 2024, reaching $6.1 billion. Although a one-time payment related to this new agreement had no immediate impact on the company's revenue or earnings, it sets the stage for long-term financial benefits.
In addition to its financial achievements, American Airlines demonstrated remarkable operational resilience throughout the year. Despite facing challenges such as extreme weather conditions, the airline maintained strong operational performance. In the fourth quarter, American ranked second among the four largest U.S. carriers in completion factor and on-time departures. For the year, the company achieved its second-best completion factor since the merger with US Airways, handling the largest volume of passengers ever. Continuous investment in technology and operations will further enhance the company's reliability and ability to recover from disruptions.
American Airlines' financial performance exceeded expectations, with fourth-quarter and full-year earnings surpassing prior guidance. On a GAAP basis, the company produced an operating margin of 8.3% for the quarter and 4.8% for the full year. Adjusted for special items, these margins improved to 8.4% and 6.0%, respectively. The airline generated record free cash flow of $2.2 billion in 2024, enabling it to achieve its total debt reduction goal of $15 billion ahead of schedule. With $10.3 billion in total available liquidity, American remains focused on strengthening its balance sheet and improving its credit ratings.
Looking ahead, American Airlines anticipates continued financial stability and growth. Based on current demand trends and fuel price forecasts, the company expects its first-quarter 2025 adjusted loss per diluted share to range between ($0.20) and ($0.40). For the full year, it projects adjusted earnings per diluted share between $1.70 and $2.70. CEO Robert Isom emphasized that the airline's network strength, loyalty programs, fleet efficiency, and operational reliability position it well for future success. The team's dedication and strategic initiatives have laid a solid foundation for sustained excellence.