American Airlines forecast deeper losses for the year and said it will slow its capacity growth next year as soaring fuel costs outweigh record revenue.
The carrier expects to lose between $1 and $1.60 per share on an adjusted basis in 2026, widening a July forecast that anticipated a loss of 65 cents per share or a profit of 65 cents.
Rising jet‑fuel prices have driven airfare up more than 20% year‑over‑year and have forced American, Delta, United and Southwest to cut their outlooks this month. Jet fuel is airlines’ largest expense after labor, and American’s fuel bill rose 67.5% in the third quarter 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,” CEO Robert Isom said in a news release.
Confidence in 2027 Profitability
Despite the lower expectations for deeper losses in 2026, Isom expressed “great confidence” that the company will return to profitability next year.
The CEO has been under pressure to boost profits at American, which lags behind Delta and United. The airline is investing in new lounges, revamped cabins, seat‑back screens and has appointed a new network chief as part of a broader management shake‑up.
Additional Context
International and premium‑travel demand remains robust. American is deepening its partnership with Alaska Airlines for trans‑Atlantic and trans‑Pacific joint operations and is nearing a decision on new wide‑body aircraft, evaluating the Boeing 787 Dreamliner, Airbus A330 and Airbus A350.
American forecast a fourth‑quarter loss of 50 cents to $1.10 per share, adjusted, with revenue expected to rise as much as 22.5% year‑over‑year and capacity growth of 5.5%‑6.5%.
Third‑quarter results versus Wall Street estimates:
- Loss per share: 28 cents adjusted vs. 35 cents expected
- Revenue: $16.34 billion vs. $16.22 billion expected
American reported a net loss of $269 million (41 cents a share) in the third quarter, compared with a $114 million loss (17 cents a share) a year earlier. Adjusted loss was 28 cents per share. Revenue jumped 19.3% to $16.34 billion.
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