third-quarter 2026
Filed Oct 22, 2026American 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.