American Airlines expects deeper losses in 2026, despite record revenue
CNBC
54m ago
Ai Focus
American Airlines stated on Thursday that due to the soaring prices of jet fuel, despite record revenue in the third quarter, the company expects to incur an adjusted loss of $1 to $1.60 per share for the full year of 2026, which is a significant deterioration from the guidance provided in July. The company also expects an adjusted loss of 50 cents to $1.10 per share in the fourth quarter.
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American Airlines expects its losses to further expand this year, despite record revenues failing to help the airline overcome the pressures of soaring fuel costs this year.

American Airlines stated on Thursday that it expects to incur a loss of $1 to $1.60 per share after adjustments for the entire year. In July, the company had projected a maximum profit of 65 cents per share or a minimum loss of 65 cents per share for the whole year.

Robert Isom, CEO of American Airlines ( Robert Isom ), stated in a press release: "American Airlines has achieved record third-quarter revenue, as well as the strongest year-over-year revenue growth of my career, with our premium business performing ahead of the pack. Our investments in the four pillars of our business strategy are paying off, and we expect to see another quarter of record revenue growth at the end of this year."

This airline, headquartered in Fort Worth, Texas, is the fourth major U.S. airline to lower its performance forecasts for 2026 following the rise in jet fuel prices after the outbreak of the Iran war. The increase in jet fuel prices has also driven air ticket prices up by more than 20% compared to last year. Delta Air Lines, United Airlines, and Southwest Airlines have also lowered their performance forecasts this month.

Jet fuel is the largest cost item for airlines, second only to labor costs. This recent surge in prices has resulted in additional costs of several billion dollars this year. In the third quarter, U.S. airlines spent 67.5% more on fuel than in the same period last year, reaching $4.64 billion.

American Airlines expects to report a loss of 50 cents to $1.10 per share after adjustments in the fourth quarter; revenue is expected to grow by up to 22.5% year-over-year, and capacity is expected to increase by 5.5% to 6.5%.

The following is a comparison of American Airlines' third-quarter performance with Wall Street expectations summarized by the London Stock Exchange Group ( LSEG ):

  • Loss per share: 28 cents after adjustment, with an expected loss of 35 cents.
  • Revenues: $1.634 billion, with an expectation of $1.622 billion.

In the third quarter, American Airlines reported a net loss of $269 million, or 41 cents per share; in the same period last year, the net loss was $114 million, or 17 cents per share. Excluding one-time items, the company reported a loss of 28 cents per share. Revenue increased by 19.3% year-on-year to $16.34 billion.

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