American Airlines cut its full-year 2026 profit outlook on April 23, 2026, warning that surging jet fuel prices will add more than $4 billion to annual costs if current levels persist. The carrier reported record Q1 revenue of $13.9 billion, up 10.8% year-over-year, but posted a net loss of $382 million as higher expenses offset demand strength.
First-quarter adjusted EPS came in at a loss of $0.40 per share, missing consensus expectations of $0.99 by $1.39. Fuel costs rose 10.7% to an average $2.75 per gallon, with forward pricing nearing $4 per gallon and minimal hedging protection.
New guidance sets full-year adjusted EPS at -$0.40 to $1.10, down from January’s $1.70–$2.70 range—an 84% midpoint reduction driven almost entirely by fuel. Q2 EPS is projected at -$0.20 to $0.20, with revenue growth of 13.5–16.5% on 4–6% capacity increase and domestic yield gains from corporate travel recovery.
Q2 unit costs excluding fuel and special items are forecast to rise 2–4%, adjusted lower for Q1 winter storm impacts that inflated CASM-ex by two points. Premium demand held firm despite fare hikes to counter fuel, underscoring revenue resilience amid the cost squeeze.
This fuel headwind compresses margins across U.S. carriers, forcing capacity discipline and pricing power tests in a high-demand environment.