American Airlines forecasts deeper 2026 loss as fuel costs soar

American reported record third-quarter revenue of $16.3 billion, up 19.3%, but posted a net loss of $269 million as fuel expense jumped 67.5%. It expects to pay about $4.70 a gallon in the fourth quarter, nearly double a year earlier, and said network growth will slow in 2027. CEO Robert Isom said he expects the airline to return to profit next year.

American is the fourth major US airline to cut its 2026 outlook this month because of fuel, after Delta, United and Southwest, CNBC reported. Reuters reported that carriers are favoring higher fares over fuller planes, and CNBC cited airline reports and federal data showing fares up more than 20% from last year.

Why it matters: Airlines are protecting margins by holding back capacity and raising prices, so travelers are paying more heading into the holiday season.