American Airlines Expects Wider 2026 Loss as Fuel Costs Bite, Will Slow Growth
American Airlines is bracing for a bigger loss this year, saying record revenue hasn't been enough to offset a sharp rise in fuel costs. The carrier now expects to lose between $1 and $1.60 a share on an adjusted basis for the full year, a steep slide from July's forecast of anything from a 65-cent profit to a 65-cent loss. Shares fell about 4% before the market opened.
The Fort Worth, Texas-based airline plans to slow its capacity growth next year in response. CEO Robert Isom said American posted record third-quarter revenue and the strongest year-over-year revenue growth of his career, with premium performance leading the way, and he expects another quarter of record revenue growth to close out the year.
American is the fourth major U.S. carrier to cut its 2026 outlook after jet fuel prices jumped following the start of the Iran war. Rising fuel costs have also pushed airfare up more than 20% from last year. Delta, United and Southwest have all slashed their outlooks this month.
Fuel is airlines' biggest expense after labor, and the spike has added billions in costs this year. American's fuel bill rose 67.5% in the third quarter from a year earlier to $4.64 billion.
For the fourth quarter, American forecasts an adjusted loss of 50 cents to $1.10 a share, with revenue up as much as 22.5% and capacity up between 5.5% and 6.5%.
In the third quarter, American reported a net loss of $269 million, or 41 cents a share, compared with $114 million, or 17 cents a share, a year earlier. Adjusted, the loss was 28 cents a share. Revenue jumped 19.3% to $16.34 billion.
Isom has faced pressure to lift profits at a carrier that has trailed profitable rivals Delta and United. American has been investing in new lounges and revamped cabins with more premium seats. Earlier this month it named a new network chief, the latest step in a management shake-up that has included new hires in operations and the commercial team. Last year, American brought in industry veteran Nat Pieper as commercial chief.