American Airlines expects deeper 2026 loss on pricier fuel despite record revenue
Quick Look
American Airlines reports record third-quarter revenue of $16.34 billion but warns of deeper full-year losses due to elevated fuel costs, adjusting its annual earnings forecast to a loss between $1 and $1.60 per share.
AI-generated summary
Why It Matters
The airline industry is currently facing significant pressure from volatile fuel prices. American Airlines is attempting to offset these costs through a four-pillar commercial strategy.
American Airlines forecast deeper losses this year as record revenue failed to help the airline recover from this year's spike in fuel costs.
American on Thursday said it expects to lose between $1 and $1.60 a share, on an adjusted basis for the full year. In July, it forecast earnings of up to 65 cents a share to a loss of as low as 65 cents a share.
"American delivered record third-quarter revenue and the strongest year-over-year revenue growth in my career, with premium performance leading the way," American CEO Robert Isom said in a news release. "The investments we are making across the four pillars of our commercial strategy are working, and we expect another quarter of record revenue growth to close out the year."
Here is what American reported in the third quarter compared with Wall Street estimates compiled by LSEG:
Loss per share: 28 cents adjusted vs. 35 cents expected
Revenue: $16.34 billion vs. $16.22 billion expected
What to Watch
AI outlook — possibilities, not facts
American Airlines to close the year with record revenue growth.
Likely · Within months
Open Questions
- Will fuel prices stabilize in the next quarter?
- How will the market react to the revised guidance?
