American Airlines has projected a larger loss for 2026 due to rising fuel costs, despite posting record revenue in the third quarter. The airline now expects an adjusted loss per share between $1 and $1.60 for the year, a significant downgrade from its July forecast that ranged from a loss of 65 cents to a profit of 65 cents per share. This revision places American as the fourth major U.S. carrier to lower its profit outlook in 2026 amid a surge in jet fuel prices triggered by the conflict in Iran. Fuel expenses, the airline’s largest cost after labor, increased considerably, with a 67.5% rise in the third quarter alone, amounting to $4.64 billion.

CEO Robert Isom acknowledged the impact of fuel price spikes but expressed confidence in returning to profitability in 2027. Under pressure to close a sizable profit gap compared to more successful competitors Delta and United, American has been executing a restructuring strategy that includes investing in premium cabin upgrades and new amenities like seat-back screens. The company recently appointed a new network chief and bolstered its management team in operations and commercial functions as part of its ongoing turnaround efforts.

Demand for international and premium travel remains strong, and American is enhancing its partnerships to support growth. The airline announced it would expand its collaboration with Alaska Airlines, enabling joint trans-Atlantic and trans-Pacific services. Additionally, American is nearing decisions on a new wide-body aircraft order, with options under consideration including the Boeing 787 Dreamliner and Airbus A330 and A350 models, which signals a long-term commitment to modernizing its fleet.

In the third quarter, American reported a net loss of $269 million, or 41 cents a share, compared with a smaller loss a year earlier. Adjusted for one-time items, the company posted a loss of 28 cents per share, better than analyst expectations. Revenue climbed 19.3% to $16.34 billion, reflecting robust demand despite higher airfare driven by increased fuel costs. Looking ahead to the fourth quarter, American forecasts an adjusted loss between 50 cents and $1.10 per share, while expecting revenue growth up to 22.5% and a capacity increase of about 6%, indicating cautious optimism amid challenging market conditions.