Video Possible United, American Airlines merger, report says

American Airlines (AAL) shares rose 1.6% to $13.74. The company plans to increase premium-seat capacity by 60% on narrowbody aircraft, with retrofitting starting in 2028. Despite break-even earnings guidance, Wall Street's average target is $19.03, suggesting 38.5% upside. Q2 revenue was $16.7 billion, with adjusted net profit at $99 million.

American Airlines reported Q2 2026 earnings, beating EPS estimates by 228% on record revenue. However, fuel costs rose 83% YoY to $4.88B, reducing operating margins to 2.7%. The company revised full-year guidance to a range of $0.65 to -$0.65.

United Airlines (UAL) shares rose 4.5% after CEO Scott Kirby stated the company aims to offset $4.6B in fuel cost increases through revenue growth, despite a $400M quarterly headwind. Kirby also mentioned capacity reductions for May and June to manage higher fuel prices. UAL stock is down 17% in 2026.

United Airlines has received FAA approval to activate privacy doors in its new Polaris business-class suites on Boeing 787-9 Dreamliners, which were previously locked open. The doors are now being unlocked aircraft by aircraft. United's Elevated interior, featuring these suites, is part of its premium expansion and will be deployed on several international routes. The airline plans to add at least 30 such aircraft by the end of 2027.

Delta and American Airlines generate significant revenue from credit card partnerships. Delta received $8.2B from American Express in 2025, expecting $10B. American Airlines earned $6.2B, with a 10-year Citi deal adding $1.5B annually. These figures highlight the role of uncapped interchange fees in U.S. travel economics.

The FAA is investigating after two commercial planes, American Airlines Flight 386 and United Airlines Flight 739, reported blown tires hours apart at Chicago O'Hare International Airport. Both planes landed safely, and passengers were transported to the terminal. American Airlines and United Airlines confirmed the incidents, with no reported injuries. This follows a series of recent tire-related incidents at Chicago airports.