American Airlines Looking at Full-Year Loss Amid Elevated Fuel Prices Despite Third-Quarter Beat

11:50 AM EDT, 10/22/2026 (MT Newswires) -- American Airlines (AAL) expects to record a loss this year as elevated fuel prices continue to weigh on profitability, despite better-than-expected third-quarter results. The air carrier said Thursday it now expects an adjusted loss of between $1 and $1.60 per share for 2026, compared with the previous guidance of a $0.65 loss to $0.65 in earnings. The consensus on FactSet is for a non-GAAP loss of $1.03. For the ongoing quarter, American Airlines expects fuel expenses to increase by approximately $2.8 billion on an annual basis. In the previous three-month period, fuel costs surged by $1.9 billion, or 68% year over year. Last week, jet fuel's average price rose 1.2% from the week before to $192.44 per barrel, according to data published by the International Air Transport Association. Global energy prices have surged this year as conflicts affecting major crude-producing regions, including the Middle East, have disrupted energy supplies. Fuel "will remain a significant headwind" in the fourth quarter, Chief Financial Officer Devon May said during a conference call, according to a FactSet transcript. As of Oct. 19, American Airlines expects an average fuel price of about $4.70 per gallon in the quarter, nearly double what it paid a year earlier, the company said in its earnings release. The airline reported an adjusted loss of $0.28 a share for the September quarter, widening from a $0.17 loss the year before, but better than the Street's view for a non-GAAP per-share loss of $0.36. Revenue climbed 19% to $16.34 billion, surpassing the average analyst estimate of $16.21 billion. Shares of the company were up 3.2% in Thursday trade, reducing its year-to-date loss to about 18%. Chief Executive Robert Isom said on the call that the third-quarter topline performance was the company's "strongest quarterly revenue growth" of his career. "Unfortunately, the significant increase in fuel prices more than offset that strength," Isom said. Total revenue per available seat mile, a key measure of unit revenue, rose 15%. Capacity was up 4.2%. American Airlines expects to post an adjusted loss of $0.50 to $1.10 for the current quarter, with revenue to grow by 19.5% to 22.5%. The Street is looking for a non-GAAP loss of $0.52 and sales to increase by 19%. Capacity is pegged at 5.5% to 6.5%. "We're focused on achieving profitable, sustainable growth in any environment," Isom told analysts on the call. "And given today's elevated fuel prices, we now expect our growth rate in 2027 to decelerate considerably." This week, Southwest Airlines (LUV) lowered its full-year adjusted EPS outlook despite recording a stronger-than-expected third-quarter profit, while United Airlines (UAL) issued a downbeat fourth-quarter earnings guidance. Earlier in October, Delta Air Lines (DAL) slashed its 2026 earnings projections. In an emailed client note this month, Morgan Stanley said investors were likely to focus on how airlines will tackle future capacity and cost pressures amid persistently high jet fuel prices, instead of their earnings performance this season. Price: 12.52, Change: +0.29, Percent Change: +2.33