American sets new revenue records amid historic fuel cost pressure
American Airlines Group Inc. (AAL) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Corporate Communications mediarelations@aa.com Investor Relations investor.relations@aa.com FOR RELEASE: Thursday, Oct. 22, 2026 American sets new revenue records amid historic fuel cost pressure FORT WORTH, Texas — American Airlines Group Inc. (NASDAQ: AAL) today re
How this was made
The 30-second read
Why it matters
The earnings release provides fresh data on revenue growth and cost pressures, influencing airline valuations and cost‑of‑fuel assumptions.
Market read
First‑hand earnings data for a major carrier; informs short‑term trading decisions on airline stocks and sector cost outlook.
What to watch
Potential cost‑saving initiatives and upcoming Starlink Wi‑Fi rollout may mitigate future fuel cost exposure.
American sets new revenue records amid historic fuel cost pressure
Record revenue growth and strong unit-revenue performance were outweighed by a 67.5% increase in fuel expense, producing GAAP and adjusted net losses.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total operating revenues, 3 Months Ended September 30GAAP | $16.34B | – | 19.3% |
| Passenger revenue, 3 Months Ended September 30GAAP | $14.9B | – | 19.5% |
| Cargo revenue, 3 Months Ended September 30GAAP | $274M | – | 29.1% |
| Other revenue, 3 Months Ended September 30GAAP | $1.16B | – | 15.2% |
| Total operating expenses, 3 Months Ended September 30GAAP | $16.22B | – | 19.8% |
| Aircraft fuel and related taxes, 3 Months Ended September 30GAAP | $4.63B | – | 67.5% |
| Salaries, wages and benefits, 3 Months Ended September 30GAAP | $4.71B | – | 5.7% |
| Regional operating expenses, 3 Months Ended September 30GAAP | $1.36B | – | 5.5% |
| Regional depreciation and amortization, 3 Months Ended September 30GAAP | $93M | – | 10.5% |
| Maintenance, materials and repairs, 3 Months Ended September 30GAAP | $1.09B | – | 6.2% |
| Other rent and landing fees, 3 Months Ended September 30GAAP | $996M | – | 9.9% |
| Aircraft rent, 3 Months Ended September 30GAAP | $309M | – | (0.5)% |
| Selling expenses, 3 Months Ended September 30GAAP | $553M | – | 14.7% |
| Depreciation and amortization, 3 Months Ended September 30GAAP | $493M | – | 3.9% |
| Special items, net, 3 Months Ended September 30GAAP | $9M | – | 22.5% |
| Other operating expenses, 3 Months Ended September 30GAAP | $1.97B | – | 13.7% |
| Operating income, 3 Months Ended September 30GAAP | $115M | – | (23.4)% |
| Operating margin, 3 Months Ended September 30GAAP | 0.7 % | – | – |
| Interest income, 3 Months Ended September 30GAAP | $87M | – | (3.8)% |
| Interest expense, net, 3 Months Ended September 30GAAP | −$435M | – | 0.7% |
| Total nonoperating expense, net, 3 Months Ended September 30GAAP | −$449M | – | 53.8% |
| Income tax benefit, 3 Months Ended September 30GAAP | −$65M | – | nm |
| Net income (loss), 3 Months Ended September 30GAAP | −$269M | – | nm |
| Diluted earnings (loss) per common share, 3 Months Ended September 30GAAP | $ (0.41) | – | – |
| Operating income excluding net special items, 3 Months Ended September 30non-GAAP | $132M | – | (16.2%) |
| Operating margin excluding net special items, 3 Months Ended September 30non-GAAP | 0.8 % | – | – |
| Net income (loss) excluding net special items, 3 Months Ended September 30non-GAAP | −$182M | – | 63.7% |
| Diluted earnings (loss) per share excluding net special items, 3 Months Ended September 30non-GAAP | $ (0.28) | – | – |
| Total operating expenses per ASM, 3 Months Ended September 30GAAP | 20.10 (in cents) | – | 14.9% |
| Total operating expenses per ASM excluding net special items, fuel and profit sharing, 3 Months Ended September 30non-GAAP | 14.34 (in cents) | – | 3.0% |
| Total operating revenues, 9 Months Ended September 30GAAP | $46.98B | – | 15.6% |
| Operating income, 9 Months Ended September 30GAAP | $521M | – | (48.7)% |
| Net income (loss), 9 Months Ended September 30GAAP | −$580M | – | nm |
| Diluted earnings (loss) per common share, 9 Months Ended September 30GAAP | $ (0.88) | – | – |
| Net cash provided by operating activities, 9 Months Ended September 30GAAP | $4.54B | – | – |
| Capital expenditures and aircraft purchase deposits, 9 Months Ended September 30GAAP | −$2.73B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Domestic passenger revenue, 3 Months Ended September 30Passenger revenue per ASM increased 13.6 % and yield increased 18.0 %. | $10.49B | – | 20.2 % |
| Latin America passenger revenue, 3 Months Ended September 30Yield and passenger revenue per ASM each increased 21.1 %. | $1.62B | – | 20.7 % |
| Atlantic passenger revenue, 3 Months Ended September 30Yield increased 17.5 % and passenger revenue per ASM increased 14.5 %. | $2.44B | – | 15.6 % |
| Pacific passenger revenue, 3 Months Ended September 30Yield increased 14.8 % and passenger revenue per ASM increased 11.3 %. | $355M | – | 18.5 % |
| Total International passenger revenue, 3 Months Ended September 30Passenger revenue per ASM increased 16.4 % and yield increased 18.5 %. | $4.41B | – | 17.7 % |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
4Q 2026E (vs. 4Q 2025) and FY 2026E outlook
- Revenue+19.5% – +22.5%
- NoteAvailable seat miles: +5.5% – +6.5%
- NoteCASM excluding net special items, fuel and profit sharing: +2.5% – +3.5%
- NoteAdjusted loss per diluted share: ($1.10) – ($0.50)
- NoteFY 2026E adjusted loss per diluted share: ($1.60) – ($1.00)
- NoteAverage fuel price of approximately $4.70 per gallon
- NoteFuel expense is expected to increase approximately $2.8 billion versus the fourth quarter of 2025
What drove it
- Premium revenue increased 22.9%, while Main Cabin revenue increased 19.5% year over year.
- Total revenue per ASM increased 14.5 % to 20.25 (in cents), while passenger revenue per ASM increased 14.6 % to 18.47 (in cents).
- Available seat miles increased 4.2 % to 80,680 (millions), while passenger load factor declined (2.6) pts to 83.4.
- Premium passenger unit revenue increased 18.5% year over year, compared with an increase of 14.4% in Main Cabin.
- AAdvantage enrollments increased 27.4% year over year and managed corporate revenue increased 27.6% year over year.
- Citi co-branded credit card partnership third-quarter card spend growth was nearly 10%.
- Fuel consumption increased 3.0 % to 1,204 (gallons in millions), and average aircraft fuel price including related taxes increased 62.7 % to 3.85 (dollars per gallon).
- The company expects nearly $1 billion in annual run rate savings and more than $900 million in working capital improvements by the end of 2026 through multiyear reengineering efforts.
Concerns
- Aircraft fuel and related taxes increased $1.9 billion, or 67.5%, year over year.
- GAAP net loss widened to $ (269) (in millions) from $ (114) (in millions), while adjusted net loss widened to $ (182) (in millions) from $ (111) (in millions).
- Operating income declined (23.4)% to $ 115 (in millions), and operating margin declined to 0.7 % from 1.1 %.
- Passenger load factor declined to 83.4 from 86.0, while passenger enplanements declined (0.6) % to 58,143 (thousands).
- Fourth-quarter fuel price is anticipated to be approximately $4.70 per gallon, nearly double the price paid in the fourth quarter of 2025.
- American expects network growth in 2027 to slow from 2026 levels given elevated fuel prices.
- Total stockholders’ deficit was $ (4,224) (in millions) at September 30, 2026, compared with $ (3,727) (in millions) at December 31, 2025.
What to watch
- Fourth-quarter total revenue growth guidance of +19.5% – +22.5%.
- Fourth-quarter CASM excluding net special items, fuel and profit sharing guidance of +2.5% – +3.5%.
- Fourth-quarter adjusted loss per diluted share guidance of ($1.10) – ($0.50).
- Fuel expense expected to increase approximately $2.8 billion versus the fourth quarter of 2025.
- Execution against the target of 3.0x net debt to EBITDAR, in line with BB credit metrics.
- Premium seating expansion, including the planned increase in premium seats on narrowbody aircraft to 40% in the coming years.
Balance sheet and cash flow
- American ended the third quarter with $11.8 billion of total available liquidity.
- The company reported more than $26 billion of unencumbered assets and first-lien capacity.
- Cash at September 30, 2026 was $ 1,124 (in millions), compared with $ 954 (in millions) at December 31, 2025.
- Short-term investments at September 30, 2026 were $ 7,163 (in millions), compared with $ 4,882 (in millions) at December 31, 2025.
- Cash and restricted cash at end of period was $ 1,228 (in millions), compared with $ 938 (in millions).
- Net cash used in investing activities for the 9 Months Ended September 30 was $ (4,825) (in millions), compared with $ (1,504) (in millions).
- Net cash provided by financing activities for the 9 Months Ended September 30 was $ 456 (in millions), compared with net cash used in financing activities of $ (1,833) (in millions).
- Total debt at September 30, 2026 was $ 36,366 (in millions).
- Net debt at September 30, 2026 was $ 28,079 (in millions).
Analysis
American reported record third-quarter revenue of $ 16,335 (in millions), up 19.3%, driven by broad-based pricing and unit-revenue gains. Passenger revenue rose 19.5% to $ 14,900 (in millions), cargo revenue increased 29.1% to $ 274 (in millions), and other revenue increased 15.2% to $ 1,161 (in millions). Total revenue per ASM increased 14.5%, with domestic passenger revenue per ASM up 13.6% and total international passenger revenue per ASM up 16.4%. Management identified premium revenue growth of 22.9%, managed corporate revenue growth of 27.6%, and AAdvantage enrollment growth of 27.4% as key commercial indicators.
The quarter's central financial constraint was fuel. Aircraft fuel and related taxes rose 67.5% to $ 4,635 (in millions), as average aircraft fuel price including related taxes increased 62.7% to 3.85 (dollars per gallon). Fuel consumption increased 3.0%, while ASM increased 4.2%. Total operating expenses increased 19.8%, marginally faster than revenue growth, and operating income declined to $ 115 (in millions) from $ 151 (in millions). Operating margin declined to 0.7 % from 1.1 %.
American's underlying cost result was materially better than its reported cost increase. CASM excluding net special items, fuel and profit sharing increased 3.0% to 14.34 (in cents), compared with 13.92 (in cents). Nevertheless, the company posted a GAAP net loss of $ (269) (in millions), compared with a $ (114) (in millions) loss, and an adjusted net loss of $ (182) (in millions), compared with $ (111) (in millions). Interest expense, net was $ (435) (in millions), and total nonoperating expense, net increased to $ (449) (in millions) from $ (293) (in millions), further limiting conversion of record revenue into earnings.
Cash generation remained positive over the first nine months, with net cash provided by operating activities of $ 4,541 (in millions), while capital expenditures and aircraft purchase deposits were $ (2,728) (in millions). The company ended the quarter with $11.8 billion of total available liquidity and reported net debt of $ 28,079 (in millions). It also stated its commitment to reducing debt and reaching 3.0x net debt to EBITDAR. No share repurchases or dividends were reported in the filing.
Fourth-quarter guidance calls for another period of unusually strong top-line growth, with total revenue expected to increase +19.5% – +22.5% and ASM expected to increase +5.5% – +6.5%. The outlook embeds significant fuel pressure: American anticipates approximately $4.70 per gallon and fuel expense growth of approximately $2.8 billion versus the fourth quarter of 2025. The company guides to a fourth-quarter adjusted loss per diluted share of ($1.10) – ($0.50) and a full-year adjusted loss per diluted share of ($1.60) – ($1.00), while expecting network growth in 2027 to slow from 2026 levels.
Management, verbatim
American delivered record third-quarter revenue and the strongest year-over-year revenue growth in my career, with premium performance leading the way.
Robert Isom, American’s CEO
Our long-term focus on efficiency supported industry-leading unit cost results in the quarter, with CASM-ex increasing 3.0% year over year.
Devon May, American’s Chief Financial Officer
Not in the filing
stated, not guessed- Previous-period outlook was not provided; therefore, comparisons of actual results with prior guidance are unavailable.
- Gross margin was not reported.
- Free cash flow was not reported.
- Third-quarter operating cash flow was not reported.
- Third-quarter capital expenditures and aircraft purchase deposits were not reported.
- Share repurchases were not reported.
- Dividends were not reported.
- A tax rate was not reported.
- Prior-quarter comparisons for reported financial metrics were not reported.
- Total debt and net debt comparative balances for a prior period were not reported in the total debt and net debt table.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
American Airlines filed a Form 8‑K reporting its Q3 2026 results, including revenue, unit cost performance, and fuel expense details.
Ticker impact
American Airlines reported Q3 2026 revenue of $16.3B, up 19.3% YoY, but fuel expense rose $1.9B, leading to a GAAP net loss of $269M.
likely downward pressure as the market prices in the fuel cost hit despite revenue growth
The earnings release shows strong top-line growth but a material increase in fuel expense, which typically weighs on airline margins and can trigger a sell‑off.
Market effects
Highlights fuel cost sensitivity for the airline industry, may prompt re‑rating of cost structures across carriers.
U.S. airline stocks could see short‑term weakness; broader travel sector may be affected.
Sets a benchmark for how rising jet fuel prices impact global carriers.
Counterpoint
Despite the fuel hit, the record revenue and premium growth could support a short‑term bounce if investors focus on top‑line strength.
Key entities
- companyAmerican Airlines Group Inc.
U.S. airline reporting Q3 2026 results.
- executiveRobert Isom
CEO of American Airlines, quoted on performance.
