American Airlines forecasts bigger 2026 loss as fuel costs surge
Expects a deeper adjusted loss in 2026 after fuel costs jumped, despite record third-quarter revenue and strong travel demand. The carrier also plans to slow…
Higher jet fuel costs are weighing on American Airlines even as travel demand and revenue rise. American Airlines forecasts bigger losses for 2026 and plans to slow route-network growth next year after reporting a record $16.34 billion in third-quarter revenue.
The Fort Worth, Texas-based carrier said Thursday it expects an adjusted loss of between $1 and $1.60 a share for the full year. In July, it had forecast a range from a loss of 65 cents to a profit of 65 cents a share.
The revised outlook makes American the fourth major U.S. carrier to cut its 2026 forecast this month, CNBC reported. Delta Air Lines, United Airlines and Southwest Airlines also lowered their outlooks as jet fuel prices climbed.
Fuel costs rise as revenue sets a record
American’s fuel bill climbed 67.5% in the third quarter from a year earlier, reaching $4.64 billion, according to CNBC. The airline’s net loss widened to $269 million from $114 million in the same quarter last year, Yahoo Finance reported.
Revenue rose 19.3% to $16.34 billion. Adjusted, the airline lost 28 cents a share, compared with a Wall Street estimate of 35 cents, according to CNBC’s figures compiled by LSEG. The revenue figure also topped the $16.22 billion estimate.
“American delivered record third-quarter revenue and the strongest year-over-year revenue growth in my career, with premium performance leading the way,” Chief Executive Robert Isom said in a news release, according to CNBC.
Demand remained strong across the airline’s regions, Yahoo Finance reported. Passenger revenue increased 19.5% to $14.9 billion, while cargo revenue rose 29.1%. Premium-cabin revenue grew 22.9%, compared with 19.5% growth in the main cabin.
The strength in sales has not erased the cost pressure. Fuel is the airline’s largest expense after labor, CNBC reported, and the higher bill has left American forecasting a full-year loss despite record revenue.
Route growth faces a slower pace
American expects an adjusted loss of between 50 cents and $1.10 a share in the fourth quarter. The company forecast revenue growth of 19.5% to 22.5%, according to Yahoo Finance; CNBC reported a range of up to 22.5%.
Based on fuel prices as of October 19, American expects to pay an average of approximately $4.70 per gallon in the fourth quarter, nearly double the level a year earlier, Yahoo Finance reported. The carrier expects its quarterly fuel bill to rise by around $2.8 billion year on year.
The airline also plans to slow the growth of its route network in 2027, citing persistently high fuel costs. That means the company expects to expand more cautiously even as it reports robust demand and revenue gains.
Isom said on an earnings call Thursday that he has “great confidence” American will return to profitability next year, CNBC reported. The CEO has faced pressure to improve profits as American has trailed profitable rivals Delta and United.
American has been investing in new lounges and refreshed cabins with more premium seats. It also said this year it plans to bring seat-back screens back to its narrow-body fleet. Executives said international and premium-travel demand remained especially robust.
For the third quarter, American’s fuel bill reached $4.64 billion, up 67.5% from a year earlier.
Source: cnbc.com
