American Airlines slashes 2026 earnings outlook as fuel costs spike - CNBC

What the report says

CNBC reported that American Airlines lowered its 2026 adjusted earnings outlook again on Thursday, pointing to higher fuel costs that have pressured airline results despite rising fares. The carrier now expects results ranging from an adjusted loss of 65 cents per share to adjusted earnings of 65 cents per share. In April, American had projected a range from a 40-cent loss to $1.10 in earnings per share, after starting the year with a forecast of $1.70 to $2.70 per share.

The reduced guidance weighed on investor sentiment, with CNBC reporting that American’s shares fell 8% Thursday. The airline also gave a weaker-than-expected current-quarter outlook, projecting an adjusted loss of 70 cents to 10 cents per share, while analysts had expected earnings of 28 cents per share. American forecast revenue growth of 16% to 19% for the quarter, compared with analyst expectations of 16.6%.

For the second quarter, American reported adjusted earnings of 15 cents per share on revenue of $16.74 billion, slightly above Wall Street estimates compiled by LSEG. Net profit for the three months ended June 30 fell to $71 million, or 11 cents per share, from $599 million, or 91 cents per share, a year earlier. Revenue rose 16%, and passenger revenue per available seat mile increased 10%.

The update matters because fuel is one of airlines’ largest costs after labor, and volatility has complicated 2026 forecasts across the sector. CNBC noted that CEO Robert Isom has said American is working to narrow its profit gap with Delta Air Lines and United Airlines, including through planned wide-body aircraft orders and more premium seating.