American Airlines posts record Q3 revenue but fuel costs drive loss

American Airlines reported a record revenue of $16.3bn in Q3 2026, up 19.3% YoY, but posted an adjusted net loss of $182m. Fuel expenses surged 67.5%, impacting profitability. The company expects Q4 revenue growth of 19.5-22.5% but anticipates a wider loss due to rising fuel costs. The stock rose 3.3% to $12.6.

American Airlines reported Q3 2026 revenue of $16.335B, up 19.3% YoY, but forecasted a full-year loss due to rising fuel costs. Fuel expenses rose 67.5% to $4.635B, leading to a GAAP net loss of $269M. The company expects 2026 adjusted loss per share of $1.00-$1.60 and slower 2027 growth.

American Airlines (AAL) reported Q3 2026 revenue growth of 19%, but higher fuel costs increased expenses by $1.9B, leading to an adjusted loss of $0.28 per share. The company expects Q4 fuel expenses to rise by $2.8B YoY, with a Q4 adjusted loss guidance of $0.50-$1.10 per share. Capacity growth is expected to slow in 2027 due to high fuel costs, and the company is focusing on improving margins and unit revenue.

Global jet fuel prices surged 113% since Middle East conflicts, reaching $193/barrel. Airlines face rising costs, with US airfares up 23% YoY. Airlines like American, Delta, Southwest, and United have cut earnings guidance. Spirit Airlines ceased operations in May due to fuel costs. According to Airlines for America, airlines may lose $12B this year.

Major U.S. airlines reported Q3 results with strong revenues but squeezed profits due to high fuel costs. American Airlines (AAL) posted a net loss of $269M on record revenues of $16.3B, with fuel expenses up 67.5%. Southwest Airlines (LUV) earned $270M with revenues up 21.2%, but fuel costs rose $821M. United Airlines (UAL) reported $17.9B revenue and $1B net income, with fuel expenses up 62%. All carriers expect higher fuel costs in Q4.

American Airlines Group revised its full-year outlook, forecasting an adjusted loss of $1.00 to $1.60 per share, wider than its previous range. The company cited higher fuel costs and guided to a Q4 loss of 50 cents to $1.10 per share. Shares fell up to 4.4%. Despite rising fares, demand remains strong, particularly in premium segments. The airline also plans to install Starlink internet on over 1,000 aircraft.