American Airlines has lowered its financial outlook for 2026 as soaring jet fuel prices continue to weigh on profits, despite the carrier reporting record revenue in the third quarter.
The Texas-based airline now expects an adjusted loss of $1 to $1.60 per share this year, a significant downgrade from its July forecast, which ranged from a loss of 65 cents per share to a profit of 65 cents per share. American also plans to slow capacity growth next year as it navigates rising operating expenses.
The airline is the latest major U.S. carrier to cut its earnings projections following a surge in fuel prices linked to the ongoing war in Iran. Delta Air Lines, United Airlines and Southwest Airlines have also lowered their forecasts this month.
Fuel is the airline industry’s largest expense, and American spent $4.64 billion on fuel in the third quarter, up 67.5% from the same period last year. Although the airline generated $16.34 billion in revenue, a 19.3% increase from the same period last year, it still recorded a net loss of $269 million, compared with $114 million a year earlier.
Higher ticket prices have helped airlines offset some of the added costs, with U.S. airfares rising an average of roughly 23% year over year through September, according to Labor Department data. However, carriers face uncertainty over how much more they can charge passengers without affecting demand.
American Airlines CEO Robert Isom expressed confidence that the airline will return to profitability in 2027. The company has been investing in airport lounges, upgraded aircraft cabins, and additional premium offerings as it seeks to strengthen its competitive position against more consistently profitable rivals, including Delta and United.
“American delivered record third-quarter revenue and the strongest year-over-year revenue growth in my career, with premium performance leading the way,” Isom said. “The investments we are making across the four pillars of our commercial strategy are working, and we expect another quarter of record revenue growth to close out the year. While historically high fuel prices significantly impacted our financial results, our focus remains on restoring profitability and building a stronger American for the long term. I’m grateful to the American Airlines team for making this progress possible.”
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