Highlights
- American Airlines now expects an adjusted full-year 2026 loss of $1 to $1.60 per share, down from its July forecast of a loss of 65 cents to a profit of 65 cents per share.
- The airline’s third-quarter fuel bill rose 67.5 per cent year-on-year to $4.64 billion.
- American plans to slow capacity growth next year as it looks to return to profitability.
American Airlines has sharply downgraded its earnings outlook for 2026, warning that soaring fuel costs will push it deeper into the red and force it to reconsider its growth plans.
The Fort Worth, Texas-based carrier now expects an adjusted full-year loss of $1 to $1.60 per share. Its previous forecast, issued in July, ranged from a loss of 65 cents per share to a profit of 65 cents.
The downgrade comes as airlines face a steep rise in jet fuel prices following the start of the Iran war. Fuel is one of the industry's biggest expenses after labour, leaving carriers exposed to sudden increases in energy costs.
American's third-quarter fuel bill climbed 67.5 per cent year-on-year to $4.64 billion, adding significant pressure to its finances.
Despite the worsening outlook, the airline reported record third-quarter revenue, with chief executive Robert Isom pointing to strong year-on-year growth, particularly in premium travel.
American reported an adjusted loss of 28 cents per share for the quarter, narrower than analysts' expectations of a 35-cent loss. Revenue reached $16.34 billion, slightly above the $16.22 billion forecast by analysts.
However, its net loss widened to $269 million, or 41 cents per share, from $114 million, or 17 cents per share, a year earlier. Revenue increased 19.3 per cent over the same period.
The airline expects to slow capacity growth next year as it works towards returning to profitability. For the fourth quarter, it forecast an adjusted loss of 50 cents to $1.10 per share, while revenue is expected to rise by as much as 22.5 per cent. Capacity is projected to increase by 5.5 to 6.5 per cent.
American is not alone in facing pressure from fuel prices. Delta Air Lines, United Airlines and Southwest Airlines have also cut their outlooks as higher energy costs weigh on the sector.
American Airlines chief executive Robert Isom said the airline remained confident it could return to profitability next year.
