American VS. United: Two Balance Sheets, Two Very Different Flight Plans (2021–2024)

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AMERICAN VS. UNITED: TWO BALANCE SHEETS, TWO VERY DIFFERENT FLIGHT PLANS (2021–2024)

THE SHOW

United Airlines shows a conventionally healthy balance sheet with positive and rising equity, larger assets, and manageable leverage. American Airlines, by contrast, remains in financial triage: meaningful debt reduction, less negative equity, but still liabilities exceeding assets and deep negative working capital.

If you’re buying balance-sheet quality, United wins hands down. If you’re buying turnaround torque, American offers higher risk—and potentially higher reward.

SNAPSHOT: 2024 SIDE-BY-SIDE

Metric (12/31/2024)	American (AAL)	United (UAL)	Quick Read
Total Assets	61,783,000	74,083,000	UAL has grown; AAL has shrunk.
Total Liabilities	65,760,000	61,408,000	AAL owes more than it owns.
Common Equity	-3,977,000	12,675,000	AAL still negative; UAL comfortably positive.
Total Debt	37,544,000	33,633,000	Both high, but AAL heavier.
Net Debt	29,672,000	19,887,000	AAL carries more leverage.
Working Capital	-11,141,000	-4,431,000	Both negative, but AAL far deeper.
Capital Lease Obligations	7,068,000	4,977,000	AAL is more lease-loaded.
Invested Capital	26,499,000	41,331,000	UAL has the bigger engine.

Key Ratios (2024):

Liabilities/Assets: AAL 106% vs. UAL 83%
Equity/Assets: AAL -6% vs. UAL +17%
Net Debt/Assets: AAL 48% vs. UAL 27%
Total Debt/Assets: AAL 61% vs. UAL 45%

Translation: United looks like an investment-grade airline. American still looks like a recovery project with training wheels.

TREND LINES: 2021 → 2024

American Airlines (AAL)

Debt: 46,177,000 → 37,544,000 (▼ ~18.7%)
Net Debt: 37,787,000 → 29,672,000 (▼ ~21.5%)
Liabilities: 73,807,000 → 65,760,000 (▼ ~10.9%)
Equity: -7,340,000 → -3,977,000 (improved by ~3.4B)
Assets: 66,467,000 → 61,783,000 (▼ ~7%)

Narrative: American is paying down debt but shrinking its asset base. Equity is less negative, but the hole isn’t closed.

United Airlines (UAL)

Debt: 39,366,000 → 33,633,000 (▼ ~14.6%)
Net Debt: 15,080,000 → 19,887,000 (▲ due to reinvestment)
Liabilities: 63,146,000 → 61,408,000 (▼ ~2.8%)
Equity: 5,029,000 → 12,675,000 (▲ +7.6B)
Assets: 68,175,000 → 74,083,000 (▲ +8.7%)

Narrative: United has rebuilt equity and expanded assets without overleveraging. It’s the picture of balance-sheet discipline.

WHERE EACH AIRLINE IS DOING WELL

American: Quiet but Real Deleveraging

Debt down by $8.6B, net debt down by $8.1B since 2021.
Liabilities cut by 11%.
Equity hole shrinking.
MacroHint take: American is stabilizing after years of turbulence, but it still hasn’t reached level flight.

United: Classic Financial Strength

Equity up 150% since 2021.
Liabilities comfortably below assets.
Asset base growing.
MacroHint take: United looks like the airline you’d lend to. Solid capital, manageable leverage, and asset growth.

WHERE EACH AIRLINE IS LACKING

American: Still Flying on Fumes

Negative equity (-3.98B).
Liabilities exceed assets by ~6%.
Working capital deeply negative (-11.1B).
Bottom line: The path to solvency is real but narrow.

United: Net-Debt Drift

Net debt higher than 2021, mostly from reinvestment.
Working capital swung negative, highlighting liquidity management needs.
Bottom line: United’s balance sheet is strong—but must guard against complacency.

WHAT MANAGEMENT NEEDS TO DO NEXT

American Airlines

Finish deleveraging: Push net debt toward $20B.
Fix liquidity risk: Build a larger cash/revolver buffer and smooth working capital.
Refine fleet spending: Prioritize free-cash-flow returns over expansion optics.
Extend maturities: Avoid refinancing cliffs.
No buybacks: Focus on debt reduction and equity rebuild.

United Airlines

Preserve liquidity discipline: Keep working capital under control.
Lower net debt gradually: Rebalance growth vs. debt paydown.
Defend equity gains: Avoid overextension on capex or labor costs.
Stagger maturities: Maintain flexibility in future refinancing.

INVESTOR TAKEAWAY

If you want quality: Choose United. Positive equity, healthier leverage, and consistent asset growth.
If you want torque: Choose American. A levered play on execution and free cash flow recovery.
If you want both: Wait for American’s equity to turn positive—then you’ll finally get a real margin of safety.

DISCLAIMER: This analysis of the aforementioned stock security is in no way to be construed, understood, or seen as formal, professional, or any other form of investment advice. We are simply expressing our opinions regarding a publicly traded entity.

MACROHINT

MACROHINT

American VS. United: Two Balance Sheets, Two Very Different Flight Plans (2021–2024)