American Airlines reports quarterly loss as fuel costs surge

American Airlines reported a $269 million net loss for the third quarter of 2026, despite achieving record operating revenue of $16.34 billion, a 19.3% increase year-over-year. The loss was primarily driven by a 67.5% surge in fuel expenses, which rose by approximately $1.9 billion compared to the previous year as average prices reached $3.85 per gallon.

In response to the rising costs, the airline has adjusted its full-year 2026 outlook, now forecasting an adjusted loss of $1.00 to $1.60 per share. CEO Robert Isom indicated that the company may reduce capacity growth in 2027 to protect margins.

Despite the bottom-line pressure, the carrier saw significant growth in high-margin segments. Premium revenue increased by 22.9% and managed corporate revenue rose by 27.6%. The company also reported strong performance from its AAdvantage loyalty program, with enrollments increasing by 27% year-over-year.