American Airlines now expects a full-year loss as jet fuel costs outpace fares

American Airlines Group expects an adjusted loss of $1.00 to $1.60 a share for 2026, as higher fuel prices outweighed record revenue in the third quarter. The company reported third-quarter results on Thursday and projected another adjusted loss for the fourth quarter.

American's July outlook for the full year spanned a profit of as much as 65 cents a share down to a 65-cent loss, according to CNBC.

Third-quarter revenue rose 19.3% from a year earlier to $16.3 billion, above the high end of the company's guidance range. The airline recorded a GAAP net loss of 41 cents a share, or $269 million, up from 17 cents a share, or $114 million, a year earlier. The adjusted net loss was $182 million, or 28 cents a share.

Fuel expense rose $1.9 billion, or 67.5%, to $4.6 billion. American paid an average of $3.85 a gallon in the quarter, up from $2.37 a year earlier. Through nine months, the company reported a net loss of $580 million, compared with net income of $12 million in the same period of 2025.

For the fourth quarter, American expects revenue growth of 19.5% to 22.5% and an adjusted loss of 50 cents to $1.10 a share. Based on the forward fuel curve as of Oct. 19, it anticipates an average fuel price of about $4.70 a gallon, close to double the price paid in the fourth quarter of 2025. At that price, fuel expense would rise about $2.8 billion from a year earlier.

“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,” CEO Robert Isom said in a statement. He added that the company anticipates setting another revenue growth record in the final quarter of the year.

Given elevated fuel prices, American expects network growth in 2027 to slow from 2026 levels, the company said. CFO Devon May said the airline expects to lead the network carriers in the spread between year-over-year unit revenue growth and growth in unit costs excluding fuel, special items and profit sharing.

The airline ended the quarter with $11.8 billion of total available liquidity. It also expects to reach nearly $1 billion in annual run-rate savings by the end of 2026 through its reengineering efforts.

American is the latest of four big U.S. airlines to trim its 2026 outlook after jet fuel prices surged when the Iran war began, according to CNBC. Delta Air Lines, United Airlines and Southwest Airlines each pared their guidance earlier this month, CNBC said. Airfare is up more than 20% from last year, according to CNBC.

American Airlines stock fell 3.3% to $11.83 in premarket trading on Thursday.