American Airlines reported steeper financial challenges for this year, revising its adjusted earnings forecast to a loss between $1 and $1.60 per share, compared with a prior projection that ranged from a 65-cent loss to a 65-cent gain. The Fort Worth-based carrier attributed the downward revision to a significant spike in jet fuel costs following geopolitical tensions.
The airline joins three other major U.S. carriers—Delta, United, and Southwest—in cutting their full-year outlooks due to elevated fuel expenses. Jet fuel, the industry’s second-largest cost after labor, surged substantially this year, with American reporting a 67.5% increase in its fuel bill during the third quarter alone, reaching $4.64 billion. Industry data indicates that rising jet fuel prices have driven up airfare more than 20% compared to the previous year.
Despite these headwinds, American achieved record third-quarter revenue of $16.34 billion, marking a 19.3% increase year-over-year. Chief Executive Robert Isom emphasized robust premium travel demand and expressed confidence in returning to profitability next year. The company posted a net loss of $269 million, or 41 cents per share, in the quarter.
Looking ahead, American announced a measured approach to growth, planning reduced capacity expansion next year. The carrier is simultaneously pursuing strategic investments to enhance profitability, including a deepening partnership with Alaska Airlines for transatlantic and transpacific operations, new aircraft cabin configurations featuring premium seating, and discussions regarding wide-body aircraft orders from Boeing and Airbus. Recent management changes in network planning, operations, and commercial departments reflect broader efforts to improve operational and financial performance.
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