American Airlines Cuts 2026 Forecast and Slows Growth Plans

American Airlines expects to report a larger loss for 2026 and plans to slow capacity growth next year as soaring jet fuel prices erode its financial performance. The Fort Worth, Texas-based carrier announced the revised outlook on Thursday, October 22, despite reporting record third-quarter revenue amid higher operating costs across the airline industry.

American said it now expects an adjusted full-year loss of $1 to $1.60 per share. In July, the airline had projected results ranging from earnings of 65 cents per share to a loss of 65 cents per share, marking a substantial deterioration in its earnings outlook.

The airline's shares fell about 4% in premarket trading following the announcement. American also forecast an adjusted fourth-quarter loss of 50 cents to $1.10 per share, while expecting revenue to increase by as much as 22.5% year over year and capacity to grow between 5.5% and 6.5%.

Chief Executive Robert Isom highlighted the company's revenue performance while acknowledging progress in its commercial strategy. In a company news release, he said, "American delivered record third-quarter revenue and the strongest year-over-year revenue growth in my career, with premium performance leading the way, the investments we are making across the four pillars of our commercial strategy are working, and we expect another quarter of record revenue growth to close out the year."

American's third-quarter revenue reached $16.34 billion, a 19.3% increase from the same period a year earlier. The figure exceeded Wall Street's consensus estimate of $16.22 billion, according to estimates compiled by LSEG.

However, the revenue growth did not translate into improved profitability. American reported a third-quarter net loss of $269 million, or 41 cents per share, compared with a net loss of $114 million, or 17 cents per share, in the same quarter last year.

After adjustments for one-time items, the airline recorded a loss of 28 cents per share, narrower than the 35-cent loss analysts expected, according to LSEG estimates.

Fuel expenses have become a major source of pressure on the airline's finances following a sharp increase in jet fuel prices after the start of the Iran war. American's third-quarter fuel bill rose 67.5% from a year earlier to $4.64 billion, adding to the industry's cost burden.

Jet fuel is the airline industry's second-largest expense after labor. Higher fuel prices have also contributed to airfares rising more than 20% from the previous year, according to the source report.

American is the fourth major U.S. carrier to reduce its 2026 financial outlook this month because of rising fuel costs. Delta Air Lines, United Airlines and Southwest Airlines have also lowered their forecasts, reflecting the impact of higher fuel expenses across the domestic aviation sector.

The weaker outlook adds to pressure on Isom to improve American's profitability. The airline has significantly lagged behind profitable competitors Delta and United, prompting efforts to strengthen its premium travel offering through investments in new lounges and redesigned cabins with more premium seats.

Earlier in October, American also announced that it was replacing its network chief as the company continued efforts to improve its operations and financial performance.