American Airlines forecast deeper losses this year and said it will slow its capacity growth next year as record revenue failed to help the airline recover from a spike in fuel costs.
American said Thursday that it expects to lose between $1 and $1.60 a share, on an adjusted basis in 2026. In July, it forecast adjusted full-year earnings per share between a loss of 65 cents and a profit of 65 cents.
The Fort Worth, Texas-based airline is the fourth major U.S. carrier to cut its forecast for 2026 due to a jump in jet fuel following the start of the Iran war. Rising jet fuel prices have driven up airfare more than 20% from last year, according to airline reports and federal data. Delta Air Lines, United Airlines and Southwest Airlines also slashed their outlooks this month.
Jet fuel is airlines’ biggest expense after labor, and the spike has added billions to costs this year. American’s fuel bill was up 67.5% in the third quarter alone, from last year to $4.64 billion.
“American delivered record third-quarter revenue and the strongest year-over-year revenue growth in my career, with premium performance leading the way,” American CEO Robert Isom said in a news release.
Confidence in 2027 profitability
Despite the lower expectations for deeper losses in 2026, Isom said on an earnings call Thursday that he has “great confidence” that the company will return to profitability next year.
The CEO has been under pressure to boost profits at the carrier, which has dramatically trailed profitable rivals Delta and United. American has been investing in new lounges and revamped cabins with more premium seats and said this year that it plans to add seat-back screens again to its narrow-body fleet.
Earlier this month, the airline named a new network chief. It was the latest move in a management shake-up that has included new hires in its operations department and its commercial team. Last year, American brought in a new commercial chief, industry veteran Nat Pieper.
International and premium-travel demand has remained especially robust, executives said. Late last month, American said it would deepen its partnership with Alaska Airlines as the Seattle-based carrier would join American’s trans-Atlantic and trans-Pacific joint businesses.
The airline is also closing in on an order for new wide-body airplanes, executives said. CFO Devon May told CNBC on Thursday that the airline has considered the Boeing 787 Dreamliner, Airbus A330 and Airbus A350.
American forecast it will lose between 50 cents and $1.10 a share, adjusted, in the fourth quarter, with revenue expected to be up as much as 22.5% from a year earlier and capacity up between 5.5% and 6.5%.
Here is what American reported in the third quarter compared with Wall Street estimates compiled by LSEG:
- Loss per share: 28 cents adjusted vs. 35 cents expected
- Revenue: $16.34 billion vs. $16.22 billion expected
For the third quarter, American had a net loss of $269 million or 41 cents a share, compared with $114 million, or 17 cents a share, a year earlier. Adjusting for one-time items, American reported a loss of 28 cents a share. Revenue jumped 19.3% from a year earlier to $16.34 billion.
