American Airlines cuts 2026 outlook as fuel squeezes profit hopes
American Airlines lowered its full-year profit forecast, even as second-quarter earnings and revenue topped Wall Street expectations.
By Frankie Delgado · News Reporter
2 min read
American Airlines gave investors a tougher 2026 forecast Thursday, saying higher fuel costs could leave the carrier anywhere from an adjusted loss to a modest profit for the year.
The company now expects adjusted results between a loss of 65 cents a share and earnings of 65 cents a share for 2026, according to CNBC. That is a sharper range than the forecast American issued in April, when it projected anything from a 40-cent adjusted loss to earnings of $1.10 a share.
The lower outlook hit the stock before the opening bell Thursday, CNBC reported, with shares of the airline falling in premarket trading.
Fuel takes the wheel
The pressure point is jet fuel. CNBC reported that fuel prices have moved around sharply during the first weeks of the U.S. airline earnings season, which began in July, making forecasts harder for carriers trying to plan the rest of the year.
Airlines have said that strong travel demand and higher fares are helping absorb part of the cost increase, according to CNBC. Fuel remains one of the biggest items on an airline’s bill, ranking behind labor costs.
For American, the new guidance shows how quickly that math can change. The carrier’s April range still left room for more than $1 a share in adjusted profit. The latest range cuts the top end almost in half and allows for a deeper loss than previously expected.
Quarter beats Wall Street
The gloomier full-year view came despite a second-quarter report that cleared analysts’ expectations.
American reported adjusted earnings of 15 cents a share for the quarter, CNBC said, compared with the 3 cents a share expected by analysts whose estimates were compiled by LSEG.
Revenue also came in slightly above forecasts. The airline posted $16.74 billion in second-quarter revenue, compared with Wall Street’s expectation of $16.71 billion, according to LSEG figures cited by CNBC.
The report puts American in the middle of a familiar airline squeeze: travelers are still buying tickets, but fuel prices are making every mile more expensive to fly.
CNBC described the update as breaking news, with more details expected as the company and investors assess how much fuel costs could weigh on results through the rest of 2026.
This story draws on original reporting from CNBC.