American airlines forecasts deeper losses this year as record revenues have failed to allow the airline to recover from this year’s rising fuel costs. As a result, the carrier plans to slow its capacity growth next year.
American said Thursday it expects to lose between $1 and $1.60 per share, on an adjusted basis for the full year. In July, it forecast a profit of up to 65 cents per share and a loss of as little as 65 cents per share.
Shares of the airline were down about 4% in premarket trading.
“American delivered record third-quarter revenue and the strongest year-over-year revenue growth of my career, with premium performance leading the way,” American CEO Robert Isom said in a press release. “The investments we are making across all four pillars of our business strategy are paying off, and we anticipate another quarter of record revenue growth to close out the year.”
The Fort Worth, Texas-based airline is the fourth major U.S. carrier to cut its 2026 forecast due to a surge in jet fuel after the start of the Iran war. Rising jet fuel prices have also pushed airfares up more than 20% from last year. Delta Airlines, United AirlinesAnd Southwest Airlines also reduced their outlook this month.
Jet fuel represents airlines’ largest cost after labor, and the surge has added billions of dollars to costs this year. Americans’ fuel bills increased 67.5% in the third quarter compared to last year, to $4.64 billion.
American expects it will lose between 50 cents and $1.10 per share, adjusted, in the fourth quarter, with revenue up 22.5% from a year earlier and capacity up between 5.5% and 6.5%.
Here’s what American reported in the third quarter compared to Wall Street estimates compiled by LSEG:
- Loss per share: 28 cents adjusted versus 35 cents expected
- Income: $16.34 billion versus $16.22 billion expected
In the third quarter, American reported a net loss of $269 million, or 41 cents per share, compared with $114 million, or 17 cents per share, a year earlier. Including one-time items, American posted a loss of 28 cents per share. Revenue jumped 19.3% from the previous year to $16.34 billion.
Isom has been under pressure to increase profits at the carrier, which has lagged significantly behind profitable rivals Delta and United. American has invested in new lounges and renovated cabins with more premium seats.
Earlier this month, the airline named a new network chief. This is the latest step in a management shake-up that has included new hires in its operations department and sales team. Last year, American hired a new sales chief, industry veteran Nat Pieper.
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