American Airlines forecast deeper losses this year and said it would slow capacity growth next year as record flights failed to help airlines recover from rising fuel costs.
American said it expects to lose between $ 1 and $ 1.60 per share, on an adjusted basis in 2026. In July, it estimated 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 U.S. carrier to cut its forecast for 2026 due to a surge in jet fuel after the start of the Iran war. Rising jet fuel prices have driven airfares up more than 20% from last year, according to airline reports and federal data. Delta Air Lines, United Airlines and Southwest Airlines also slashed their outlook this month.
Jet fuel is the airline’s biggest expense after labor, and the spike has added billions in costs this year. America’s fuel bill rose 67.5% in the third quarter alone, from a year ago to $4.64 billion.
“American delivered record third-quarter revenue and the strongest year-over-year revenue growth of my career, driven by premium performance,” American CEO Robert Isom said in a news release.
Confidence in 2027 profits
Despite lower expectations for deeper losses in 2026, Isom said on Thursday’s earnings call that he has “very high confidence” that the company will turn a profit next year.
The CEO has been under pressure to boost profits in the carrier, which has dramatically trailed profitable rivals Delta and United. American has invested in new lounges and revamped cabins with more premium seats and said in the year that it plans to add seat-back screens again to the narrow fleet.
Earlier this month, the airline named a new network leader. This is the latest step in a management shakeup that includes new hires in the operations department and commercial team. Last year, America brought in a new commercial leader, industry veteran Nat Pieper.
Demand for international and premium travel remains strong, executives said. Late last month, America said it would increase its partnership with Alaska Airlines as a Seattle-based carrier will be involved in America’s trans-Atlantic and trans-Pacific joint business.
The airline also closed orders for new wide-body aircraft, executives said. CFO Devon May told CNBC Thursday that the airline has considered the Boeing 787 Dreamliner, the Airbus A330 and the Airbus A350.
American forecasts will lose between 50 cents and $1.10 per share, adjusted, in the fourth quarter, with revenue expected to rise to 22.5% from the previous year and capacity to rise between 5.5% and 6.5%.
Here’s what America reported in the third quarter compared to Wall Street estimates compiled by LSEG:
- Loss per share: 28 cents adjusted vs 35 cents expected
- result: $16.34 billion vs $16.22 billion expected
For the third quarter, American had a net loss of $269 million, or 41 cents per share, compared with $114 million, or 17 cents per share, a year earlier. Adjusted for one-time items, American reported a loss of 28 cents a share. Revenue increased 19.3% from the previous year to $16.34 billion.