American Airlines reports record Q3 revenue but warns airfares will stay high as fuel costs surge
American Airlines posted a record third‑quarter revenue of $16.3 billion, up 19.3% year‑over‑year, while fuel expense jumped 67.5% to $4.6 billion. The carrier said airfares are likely to remain elevated even if jet fuel prices fall, forecasting an average fuel price of about $4.70 per gallon in the fourth quarter. It also revised its full‑year 2026 adjusted loss outlook to $1.00‑$1.60 per share, deeper than its prior guidance.
Why it matters
The higher fuel cost outlook and deeper loss guidance suggest lower profitability for the rest of 2026, which may pressure American Airlines' share price and affect analysts' earnings models. UBS trimmed its price target for AAL after the release, reflecting the revised outlook.
Key facts
- 1Third‑quarter revenue was $16.3 billion, up 19.3% from the same period last year. markets.financialcontent.com
- 2Fuel expense rose 67.5% year‑over‑year to $4.6 billion. markets.financialcontent.com
- 3The airline paid $3.85 per gallon for fuel in the quarter, up from $2.37 a year earlier. markets.financialcontent.com
- 4GAAP net loss was $269 million, or 41 cents per share. markets.financialcontent.com
- 5Adjusted loss was 28 cents per share. markets.financialcontent.com
- 6Operating income was $115 million. markets.financialcontent.com
Summary written by AlphAI AI Desk from 6 of 6 sources. Not investment advice. Figures are as stated by the linked sources.