American Airlines reports loss on soaring jet fuel costs

NEW YORK, United States (AFP) — American Airlines reported a $269 million quarterly loss Thursday and signaled more red ink for the current quarter as soaring fuel costs hit the bottom line. Like rival United States (US) carriers Delta Air Lines and United Airlines, American pointed to billions of dollars in added costs due to the jump in jet fuel prices from the US-Iran war. But while both Delta and United still reported profits, American's loss was bigger than the $114 million loss in the year-ago period. Like its rivals, American benefited from still-robust consumer demand, resulting in a 19.3 per cent jump in third-quarter revenues to $16.3 billion. "American delivered record third-quarter revenue and the strongest year-over-year revenue growth in my career, with premium performance leading the way," said American CEO Robert Isom. Isom said investments in entertainment and better Internet service during flights and opening airport lounges were strengthening its ties with customers. He expects better results in 2027. "Of course we think we can be profitable next year. And that's driven by what we've seen this year," Isom said on a conference call. "We've had fuel expense now grow $7 billion over the course of the year. But for that, we'd be solidly profitable." While American has lifted seat capacity in 2026, for 2027 "our bias in terms of capacity is to the downside," Isom said, characterising the move as a response to the jet fuel spike. American's third-quarter results translated into a loss of 41 cents per share or an "adjusted" loss of 28 cents per share after a one-time tax item was excluded. The carrier projected a fourth-quarter adjusted loss of between 50 cents and $1.10 per share and an annual adjusted loss of between $1.00 and $1.60 per share. American shares rose 3.4 per cent in morning trading.