American Airlines posts record revenue, but cuts its 2026 forecast to a loss on fuel costs
Fuel expense rose 67.5% in the quarter, and the carrier expects fourth-quarter fuel to average about $4.70 a gallon.
American Airlines reported record third-quarter revenue of $16.3 billion, up 19.3% from a year earlier and above analyst estimates, helped by fare increases and strong premium demand. Its adjusted loss of 28 cents a share was smaller than the 35 cents analysts expected.
Fuel expense rose 67.5% from a year earlier to $4.64 billion, an increase of $1.9 billion, as jet fuel prices jumped after the start of the Iran war. American cut its 2026 forecast to an adjusted loss of $1.00 to $1.60 a share, from a previous range of a 65-cent loss to a 65-cent profit, and said it will slow capacity growth in 2027. It expects fourth-quarter fuel to average about $4.70 a gallon, nearly double what it paid a year earlier, and forecast a fourth-quarter adjusted loss of 50 cents to $1.10 a share.
American is the fourth major U.S. carrier to cut its 2026 outlook this month as fuel costs outpace fare increases; United made a similar move Wednesday, covered in our United story. U.S. airfares are up more than 20% from last year. American's shares fell in early trading.
