American Airlines expects a deeper full-year loss because of higher fuel costs, even after record third-quarter revenue. The carrier plans to slow capacity growth next year. It is the fourth major U.S. airline to cut its 2026 outlook this month.
American Airlines expects to lose between $1 and $1.60 a share on an adjusted basis for the full year. The company made the forecast on Thursday, and its stock was down about 4% in premarket trading.
In July, the airline had forecast earnings of up to 65 cents a share to a loss of as low as 65 cents a share. Record revenue did not offset this year's spike in fuel costs, and the carrier plans to slow its capacity growth next year as a result.
Fuel bill climbs 67.5%
Jet fuel is airlines' biggest cost after labor. American's fuel bill rose 67.5% in the third quarter from a year earlier, reaching $4.64 billion.
Delta Air Lines, United Airlines and Southwest Airlines also slashed their outlooks this month after jet fuel jumped following the start of the Iran war. Rising jet fuel prices have also pushed airfare up more than 20% from last year.
Third-quarter results
American reported an adjusted loss of 28 cents a share, against 35 cents expected in estimates compiled by LSEG. Revenue jumped 19.3% from a year earlier to $16.34 billion, above the $16.22 billion analysts expected.
The net loss came to $269 million, or 41 cents a share, compared with $114 million, or 17 cents a share, a year earlier.
CEO Robert Isom said in a news release: "we expect another quarter of record revenue growth to close out the year."
Fourth-quarter outlook
For the fourth quarter, American forecast an adjusted loss of between 50 cents and $1.10 a share. It expects revenue to rise as much as 22.5% from a year earlier, with capacity up between 5.5% and 6.5%.
Isom has been under pressure to boost profits at an airline that has dramatically trailed profitable rivals Delta and United.
Source: CNBC
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