American Airlines cuts 2026 profit view as fuel prices rise
The carrier narrowed expectations for 2026 after fuel costs climbed, while second-quarter revenue and adjusted earnings beat Wall Street estimates.
By Maya Lindqvist · Senior Technology Correspondent
2 min read
American Airlines lowered its 2026 earnings forecast on Thursday, citing higher fuel costs that have made airline profits harder to predict. The change matters because fuel is the industry’s second-largest expense after labor, and recent price swings have complicated carriers’ outlooks even as demand remains strong, CNBC reported.
The airline said it now expects full-year adjusted results to range from a loss of 65 cents a share to a profit of 65 cents a share. In April, American had projected a range from a loss of 40 cents a share to earnings of $1.10 a share.
Shares of American fell in premarket trading after the revised forecast, according to CNBC. The move came during a U.S. airline earnings season that began in July and has been marked by volatile fuel prices.
American’s second-quarter results were slightly ahead of Wall Street expectations compiled by LSEG. The company reported adjusted earnings of 15 cents a share, compared with the 3 cents a share analysts expected.
Revenue also topped estimates. American reported $16.74 billion in revenue for the quarter, compared with the $16.71 billion expected by analysts surveyed by LSEG.
Second-quarter results
- Adjusted earnings per share: 15 cents, versus 3 cents expected by LSEG
- Revenue: $16.74 billion, versus $16.71 billion expected by LSEG
- Updated 2026 outlook: adjusted loss of up to 65 cents a share to earnings of up to 65 cents a share
- Previous 2026 outlook: adjusted loss of up to 40 cents a share to earnings of up to $1.10 a share
Airlines have said strong passenger demand and higher fares are helping absorb part of the increase in fuel expenses, CNBC reported. Still, the cost pressure has made annual forecasts less certain for carriers.
American’s updated guidance shows how quickly fuel can change the outlook for an airline even when quarterly sales and adjusted earnings come in ahead of expectations. The company did not provide a higher earnings range despite the second-quarter beat, pointing instead to the pressure from fuel costs.
CNBC described American as the U.S. airline that operates the most flights. The company’s lower forecast adds to investor concerns about how much of the industry’s higher cost base can be covered by fares and demand through the rest of 2026.
This story draws on original reporting from CNBC.