American Airlines cuts 2026 earnings view on higher fuel costs

American Airlines lowered its 2026 adjusted earnings outlook to a range from a loss of 65 cents a share to profit of 65 cents a share, CNBC reported, citing higher fuel costs. Shares of the carrier fell in premarket trading Thursday after the revised guidance.

The new forecast is weaker than the range American issued in April, when it said full-year adjusted results could run from a loss of 40 cents a share to earnings of $1.10 a share. The change narrows the upper end of potential profit and increases the possible loss, underscoring the pressure that fuel prices can place on airline margins even when passenger demand remains firm.

Fuel is the industry’s largest cost after labor, according to CNBC. Airlines buy large volumes of jet fuel, so changes in energy prices can move operating costs quickly. When fuel rises faster than carriers can recover through ticket prices, ancillary revenue or cost controls, earnings guidance can come under pressure.

CNBC reported that fuel prices have been volatile during the early weeks of the U.S. airline earnings season, which began in July. Carriers have said strong demand and higher fares are helping absorb part of the increase, but American’s guidance cut indicates that the cost shock remains material for at least one of the largest U.S. operators.

Second-quarter results

American reported second-quarter adjusted earnings per share of 15 cents, compared with the 3 cents expected by analysts surveyed by LSEG, according to CNBC. Revenue came in at $16.74 billion, slightly ahead of the $16.71 billion consensus estimate compiled by LSEG.

The results show that American beat Wall Street estimates for the quarter even as it reduced its full-year outlook. For airlines, quarterly performance can diverge from annual guidance because fuel, demand and fares can change quickly across the travel season.

CNBC described American as the U.S. airline that flies the most. The company’s update is part of a broader earnings period in which investors are weighing resilient travel demand against higher input costs, particularly jet fuel.

American’s revised range leaves open both a full-year adjusted loss and a full-year adjusted profit. The company attributed the downgrade to fuel costs, according to CNBC, while the reported second-quarter figures reflected performance through the period already completed.

This story draws on original reporting from CNBC.