American Airlines faces 2026 loss as fuel costs bear down

American Airlines is expecting to record a loss for 2026 after the cost of rising jet fuel prices dashed hopes raised earlier in the year of achieving a profit.

On October 22, 2026, American Airlines published its third quarter results, forecasting an adjusted loss of $1.00 to $1.60 per share. In July 2026, the airline forecast a range of a $0.65 loss to a $0.65 profit per share.

According to American Airlines, aircraft fuel costs reached $4.6 billion over the third quarter, a 67.5% rise from the same period last year, when the price was $2.7 billion.

“Overall financial results were pressured by a significant increase in fuel costs,” the US carrier said. “American paid an average of $3.85 per gallon in the third quarter, which increased fuel expense by $1.9 billion year over year.”

Ritu Manoj Jethani / Shutterstock.comIn its outlook, American Airlines now anticipates an average fuel price of around $4.70 per gallon, nearly double the price paid during the fourth quarter of 2025.

“At that price, fuel expense is expected to increase approximately $2.8 billion versus the fourth quarter of 2025,” American Airlines explained. “Given elevated fuel prices, American expects network growth in 2027 to slow from 2026 levels.”

American pointed to its third quarter revenues as evidence that the airline was progressing in the right direction.

During the third quarter, total revenue reached $16.3 billion, up 19.3% year over year, when the figure stood at $14 billion.

However, the company posted a net loss of $269 million for the third quarter, compared with ⁠a loss of $114 million over the same period last year.

“American delivered record third-quarter revenue and the strongest year-over-year revenue growth in my career, with premium performance leading the way,” American’s CEO Robert Isom said. “The investments we are making across the four pillars of our commercial strategy are working, and we expect another quarter of record revenue growth to close out the year.”

Isom added: “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. I’m grateful to the American Airlines team for making this progress possible.”

American Airlines’ ‘four pillars’ are to elevate the customer experience, grow the global network, drive premium revenue and lead in loyalty.

View the full American Airlines third quarter results on its website.

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