American Airlines cuts 2026 profit outlook as fuel bill rises
American lowered its full-year adjusted EPS range after fuel prices moved higher, even as second-quarter revenue and profit beat Wall Street estimates.
By Dev Ramirez · Crypto Correspondent
· 3 min read
American Airlines lowered its 2026 profit outlook, giving investors a fresh reminder that fuel prices can quickly pressure airline earnings even when travel demand holds up. The company’s new range also shows how uncertain the rest of the year has become for carriers dealing with volatile energy costs.
CNBC reported Thursday that American now expects full-year adjusted results ranging from a loss of 65 cents per share to earnings of 65 cents per share. That is a weaker forecast than the range American issued in April, when it projected adjusted results from a loss of 40 cents per share to earnings of $1.10 per share.
Adjusted earnings per share, or adjusted EPS, is a profit measure that excludes certain items the company does not treat as part of regular operations. Investors watch it because it can show how the core business is performing, although it is not the same as net income under standard accounting rules.
The company cited higher fuel costs for the cut, according to CNBC. Fuel is the airline industry’s largest expense after labor, so even modest price swings can affect margins. Airlines sell tickets weeks or months before flights take off, but their fuel costs can move closer to the travel date, which can squeeze profit if costs rise faster than fares.
American’s shares fell in premarket trading Thursday after the update, CNBC reported. The stock was listed down 3.31% in CNBC’s market data shown with the report.
Second-quarter results topped estimates
The outlook cut came alongside second-quarter results that beat Wall Street expectations compiled by LSEG. American reported adjusted earnings of 15 cents per share, above the 3 cents per share analysts expected.
Revenue also came in slightly ahead of estimates. American reported $16.74 billion in second-quarter revenue, compared with the $16.71 billion expected by analysts, according to LSEG figures cited by CNBC.
The company’s results point to the tension facing airlines this earnings season: demand and fares have been strong enough to help absorb part of the fuel increase, but not enough for American to keep its prior full-year profit range.
Fuel volatility clouds the sector
CNBC reported that fuel prices have been volatile during the short stretch of U.S. airline earnings season that began in July. That volatility has made it harder for carriers to give investors a clear view of full-year profitability.
Airlines have said strong demand and higher fares are helping offset some of the fuel spike, according to CNBC. For investors, the key issue is whether ticket pricing can keep pace with costs without weakening demand from travelers.
American is the U.S. airline that operates the most flights, CNBC reported. That scale can give the company broad exposure to travel demand, but it also means higher fuel costs flow through a large operation.
This story draws on original reporting from CNBC.
