American Airlines forecasts deeper 2026 loss as fuel costs overwhelm record revenue

American Airlines reported record third-quarter revenue on October 22, but a surge in fuel costs left the carrier with a $269 million net loss and a substantially weaker outlook for the full year.

Record sales could not offset the fuel bill

Revenue reached $16.34 billion, up 19.3% from a year earlier. Nevertheless, the airline lost 41 cents per diluted share under generally accepted accounting principles, compared with a $114 million loss in the same quarter of 2025. Excluding special items, its loss was 28 cents per share.

Fuel expense climbed 67.5% to $4.64 billion, with American paying an average of $3.85 per gallon. The result underlines the squeeze facing an airline that is selling more travel but spending much more to operate its flights.

A weaker full-year forecast

American now expects an adjusted full-year loss of $1.00 to $1.60 per share. In July, its forecast ranged from a loss of 65 cents to a profit of 65 cents. For the fourth quarter, it expects an adjusted loss of 50 cents to $1.10 per share, despite projected revenue growth of 19.5% to 22.5%.

The company also said capacity growth in 2027 would slow from 2026 levels. These are management forecasts, rather than final results, and remain sensitive to fuel prices and travel demand.

Illustrative aircraft photo: Nikita Grishin / Pexels, used under the Pexels License. The photograph is not from the earnings announcement.

Sources

• American Airlines: third-quarter 2026 results
• CNBC: American Airlines earnings
• Pexels: photograph by Nikita Grishin