American Airlines forecasts bigger loss in 2026 on fuel spike, plans to slow growth next year

American Airlines forecast deeper losses this year as record revenue failed to help the airline recover from this year's spike in fuel costs. The carrier plans to slow its capacity growth next year as a result.

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.

The airline's stock was down about 4% in premarket trading.

"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."

The Fort Worth, Texas-based airline is the fourth major U.S. carrier to cut its forecast for 2026 due to a jump in jet fuel following the start of the Iran war. Rising jet fuel prices have also driven up airfare more than 20% from last year. Delta Air Lines , United Airlines , and Southwest Airlines also slashed their outlooks this month.

Jet fuel is airlines' biggest cost after labor, and the spike has added billions to costs this year. American's fuel bill was up 67.5% in the third quarter from last year to $4.64 billion.

American forecast it will lose between 50 cents and $1.10 a share, adjusted, in the fourth quarter, with revenue expected to be up as much as 22.5% from a year earlier and capacity up between 5.5% and 6.5%.

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

For the third quarter, American had a net loss of $269 million or 41 cents a share, compared with $114 million, or 17 cents a share, a year earlier. Adjusting for one-time items, American reported a loss of 28 cents a share. Revenue jumped 19.3% from a year earlier to $16.34 billion.