An American Airlines flight lands at Ronald Reagan Washington National Airport in Arlington, Virginia, United States, November 7, 2025.
Nathan Howard | Reuters
American airlines The airline on Thursday lowered its profit forecast for 2026, becoming the latest airline to lower its outlook after a rise in fuel costs added billions of dollars to expenses this year.
American said it could post an adjusted loss per share of 40 cents, down to earnings per share of $1.10, lower than the January forecast of between $1.70 and $2.70, although Wall Street analysts have lowered their forecasts for the sector since the U.S.-Israeli attacks on Iran this year.
Airlines have either reduced their full-year forecasts or postponed their forecasts due to the volatility in jet fuel prices since the start of the war. Fuel is typically their biggest expense after labor.
Carriers have also scrapped capacity growth plans to cut costs, which can drive up airfares when fewer seats are for sale. Airline executives said customers continue to book despite higher fares.
American noted that the midpoint of its 2026 earnings forecast was flat for the year, even with a $4 billion increase in fuel costs.
“We’re going to recover, but the key to that is just balancing supply and demand,” CEO Robert Isom told CNBC’s Phil LeBeau on Thursday. “We will quickly ensure we adjust our flights if necessary.”
American expects to increase capacity by up to 6% in the second quarter and forecast revenue growth of between 13.5% and 16.5% year over year, in line with analyst forecasts. Its adjusted earnings outlook ranged from a loss of 20 cents per share to a profit of 20 cents.
“American delivered record revenue in the first quarter, and we are on track to achieve another record in the second quarter,” Isom said in an earnings release. “This revenue momentum is the result of a focus on our four business priorities: improving customer experience, growing our global network, generating premium revenue and leading in loyalty.”
Here’s what American reported in the first quarter compared to Wall Street estimates compiled by LSEG:
- Loss per share: 40 cents adjusted versus expected loss of 47 cents
- Income: $13.91 billion versus $13.79 billion expected
For the first quarter, American reported a net loss of $382 million, or 58 cents per share, compared with a net loss of $473 million, or 72 cents, a year earlier. Including one-time items, the company posted a loss of 40 cents per share.
Its first-quarter revenue of $13.91 billion was up 10.8% from revenue of $12.55 billion a year earlier.
—CNBC Michele Luhn contributed to this report.