American Says a Fuel Spike Turned Its Quarter Into a Loss

American Airlines reported a third-quarter net loss of $269 million and warned that it expects to finish 2026 in the red. Revenue climbed 19.3 percent to $16.3 billion, but fuel spending was $1.9 billion higher than a year earlier, a 67.5 percent jump on just 4.2 percent more capacity.

For the fourth quarter, the carrier guided to an adjusted loss of 50 cents to $1.10 per share, and to a full-year loss of $1.00 to $1.60 per share. Full-year fuel expense is expected to run more than $7 billion above last year’s level, which CEO Robert Isom blamed for turning what would have been a solidly profitable quarter into a loss.

The practical effect for flyers is less flying. As of mid-September American had planned 11.2 percent year-over-year growth in December domestic capacity; Deutsche Bank analysts say that has been trimmed to 8.3 percent. The airline expects to slow capacity further in 2027, though Isom declined to give specifics, and U.S. airfares remain more than 20 percent above last year.

Isom said American can return to profit in 2027 even with elevated fuel, provided costs are stable and easier to manage. He pointed to investments in lounges, premium cabins, Starlink Wi-Fi and seatback screens, and to this year’s rebuild of its hubs at Chicago O’Hare, Phoenix and Philadelphia, as supports for performance.

Sources: Travel Weekly