- American Airlines now expects an adjusted 2026 loss of $1 to $1.60 a share, down from a July range of a 65-cent loss to a 65-cent profit. It will also slow capacity growth next year.
- Third-quarter revenue jumped 19.3% to a record $16.34 billion, but the fuel bill rose 67.5% to $4.64 billion. The net loss widened to $269 million, or 41 cents a share, from $114 million a year earlier, and the adjusted loss was 28 cents a share.
- American is the fourth major US carrier to cut its 2026 forecast this month after Delta, United and Southwest, as the Iran war drove up jet fuel. Rising fuel costs have pushed airfares up more than 20% from last year.
- For the fourth quarter, American expects an adjusted loss of 50 cents to $1.10 a share on revenue up as much as 22.5% and capacity up 5.5% to 6.5%. CEO Robert Isom said he has “great confidence” the carrier will return to profitability next year.
What Happened?
American Airlines on Thursday cut its outlook for the year as record revenue failed to offset a spike in fuel costs, CNBC reported. Isom called it the strongest year-over-year revenue growth of his career, led by premium performance. International and premium travel demand has stayed especially robust, executives said. The airline is also closing in on a wide-body aircraft order, with CFO Devon May saying it has considered the Boeing 787, Airbus A330 and Airbus A350.
Why It Matters?
The results show how fuel has turned airline earnings into an energy trade, with even double-digit revenue growth unable to keep American in the black. Jet fuel is the industry’s biggest expense after labor, so the war-driven spike hits every carrier, but American starts from a weaker position than profitable rivals Delta and United. That gap has put pressure on Isom, who is investing in lounges, premium seating and seat-back screens to close it. Slowing capacity growth next year is a defensive move that could help fares but caps the volume upside.
What’s Next?
Oil prices are the main swing factor for the fourth-quarter range and for Isom’s promise of a return to profit in 2027. Watch whether premium and international demand holds as fares rise further. The expanded partnership with Alaska Airlines on trans-Atlantic and trans-Pacific routes and a potential wide-body order will shape the longer-term story. Investors will also track whether the recent management shake-up translates into better margins.
Affected Tickers and Coins: AAL, DAL, UAL, LUV, JETS
Source: CNBC
