American Airlines Widens 2026 Loss Forecast as Fuel Costs Jump

American Airlines lowered its adjusted 2026 earnings outlook to a loss of $1 to $1.60 per share after third-quarter fuel expense rose 67.5% from a year earlier despite record revenue.

The new annual range is a further cut from American’s July forecast. In April, American projected adjusted 2026 results from a 40-cent loss to $1.10 in profit per share. By July, the range had narrowed to a 65-cent loss to a 65-cent profit. The July forecast for the third quarter also called for an adjusted loss of 10 to 70 cents per share and revenue growth of 16% to 19%. At the time, American used a third-quarter fuel assumption of about $3.75 per gallon tied to a July forward curve, as covered in the July fuel assumption and earnings outlook.

Third-quarter revenue reached a record $16.34 billion, up 19.3% from a year earlier. Fuel expense totaled $4.64 billion after rising 67.5% year over year. The July plan had anticipated a $1.7 billion increase in third-quarter fuel costs from the year-earlier period.

American posted a net loss of $269 million, versus $114 million in the same period a year earlier. The loss was 41 cents per share, compared with 17 cents a year earlier; after adjustments, it was 28 cents per share. Analysts had expected an adjusted loss of 35 cents per share.

American is the fourth major U.S. airline to reduce its 2026 forecast this month. Delta Air Lines, United Airlines and Southwest Airlines have also cut their projections. Fuel ranks second among airline costs, behind labor, and rising prices have added billions to carriers’ costs this year. American is also investing in new lounges and refreshed cabins with more premium seats, and plans to restore seat-back screens to its narrow-body fleet.

For the fourth quarter, American expects an adjusted loss of 50 cents to $1.10 per share. It projects revenue growth of up to 22.5% from a year earlier and capacity growth of 5.5% to 6.5%. The airline plans to ease the pace of capacity expansion in 2027.

American Airlines CEO Robert Isom said during Thursday’s earnings call that he had “great confidence” the company would return to profitability in 2027.