Key Highlights
- Q1 adjusted per-share loss came in at 40 cents, surpassing Wall Street’s projection of a 47-cent deficit
- Quarterly revenue reached an all-time high of $13.91 billion, marking a 10.8% annual increase and exceeding the $13.79 billion forecast
- Average fuel expense per gallon surged 10.7% to $2.75, with projections pointing to $4 per gallon ahead
- Annual earnings outlook of -$0.40 to +$1.10 per share exceeded Street expectations of a -$0.65 deficit
- Shares traded approximately 2% higher in premarket hours despite a 25% year-to-date decline through Wednesday’s session
American Airlines delivered a first-quarter adjusted per-share loss of 40 cents, outperforming Wall Street’s forecast of a 47-cent deficit. The carrier’s quarterly revenue climbed to an unprecedented $13.91 billion, representing a 10.8% year-over-year jump and exceeding analyst projections of $13.79 billion.
Passenger traffic expanded 3.9% to reach 58.55 billion revenue passenger miles. Meanwhile, available capacity increased at a slower pace of 3% to 72.01 billion available seat miles, resulting in a load factor improvement of 0.7 percentage points to 81.3%.
This represented the airline’s third quarterly loss over the past five reporting periods, though the deficit showed improvement compared to the 59-cent per-share loss recorded in the comparable quarter last year.
American Airlines Group Inc., AAL
Shares responded positively during premarket hours — climbing approximately 2% — following a challenging year that has witnessed AAL decline 25% through Wednesday’s trading session.
Jet fuel expenses remain the primary concern. Average fuel costs per gallon increased 10.7% during Q1 to reach $2.75. Looking ahead, the company’s projections now anticipate a steep rise to $4 per gallon.
Massive $4 Billion Fuel Expense Looms Over Annual Projections
American highlighted an anticipated fuel-related expense increase exceeding $4 billion in its annual forecast. This represents a substantial financial burden for any aviation operator.
Notwithstanding this significant challenge, the carrier indicated that the midpoint of its annual guidance remains approximately flat compared to 2025. The company’s full-year outlook spans a range of -$0.40 to +$1.10 per share.
Wall Street consensus had anticipated a full-year per-share loss of 65 cents, based on FactSet data. Consequently, despite the fuel cost warning, American’s guidance exceeded market expectations.
The airline also projects second-quarter revenue growth between 13.5% and 16.5% year-over-year — potentially establishing another record. Current FactSet Q2 consensus stands at $16.37 billion, implying 13.8% growth.
Industry-Wide Turbulence Impacts Major Carriers
American follows other leading U.S. airlines in revising or pausing annual guidance. The spike in fuel expenses linked to geopolitical tensions involving Iran has compelled carriers to reassess capacity planning and fare structures.
The carrier indicated expectations for sustained robust demand and plans to “recapture elevated fuel prices” — industry terminology typically signaling forthcoming ticket price increases.
The U.S. Global Jets ETF has declined 7.8% in 2026 thus far, contrasting with the S&P 500’s 4.3% gain during the identical timeframe.
AAL shares traded approximately 1.3% higher in recent premarket activity Thursday following the earnings release.
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