American Airlines Group reported record revenue of $16.7 billion for the second quarter of 2026, the highest quarterly figure in the company’s history and an increase of 16.3% compared with the same period last year.
Strong passenger demand and higher fares drove revenue growth across premium and economy cabins as well as domestic and international markets.
However, a sharp increase in fuel costs weighed heavily on profitability. American’s fuel expense increased by more than $2.2 billion, or 83%, year over year.
The airline reported GAAP net income of $71 million, equivalent to $0.11 per diluted share. Adjusted net income reached $99 million, or $0.15 per diluted share.
“American delivered year-over-year revenue growth of more than 16% in the second quarter, exceeding our initial expectations and continuing the momentum we’ve built across the business,” said American Airlines CEO Robert Isom.
Premium and Corporate Travel Drive Revenue Growth
Premium travel continued to outperform during the quarter, with premium passenger unit revenue increasing 13.4% year over year.
Main Cabin passenger unit revenue rose 8.8%, while domestic passenger unit revenue increased 10.6%.
International markets also recorded broad growth.
Passenger unit revenue increased 15.1% across American’s Pacific network, 8.9% on Atlantic routes and 6.6% in Latin America compared with the second quarter of 2025.
Business travel was another major contributor, with managed corporate revenue increasing 26% year over year. This marked American’s fifth consecutive quarter of double-digit growth in managed corporate revenue.
American is also increasing the number of premium seats across its fleet through deliveries of new Boeing 787-9 and Airbus A321XLR aircraft and cabin upgrades to existing Boeing 777-300ER, 777-200ER, Airbus A319 and A320 aircraft.
Fuel Costs Increase by More Than $2.2 Billion
The airline’s strong revenue performance was partially offset by a significant increase in fuel expenses.
Fuel costs rose by more than $2.2 billion, or 83%, compared with the second quarter of 2025.
American estimates that stronger fares allowed it to offset nearly half of the impact from the higher fuel bill.
Fuel prices remain a significant challenge heading into the second half of the year.
Based on forward fuel prices as of July 21, American expects its third-quarter fuel expense to be approximately $1.7 billion higher than during the same quarter last year.
The airline expects an average fuel price of approximately $3.75 per gallon during the third quarter.
International Network Continues to Expand
American continued expanding its international network during the second quarter, including several new transatlantic routes.
The airline launched nonstop flights from Philadelphia to Budapest and Prague, as well as a new Dallas-Fort Worth to Athens service.
American also became the first U.S. airline to return to Venezuela, resuming service between Miami and Caracas.
Capacity across the airline’s network increased 5.4% year over year during the quarter.
Operational performance also improved, with on-time arrivals increasing by 2.8 percentage points.
At Dallas-Fort Worth, American’s largest hub, changes to the airline’s flight scheduling structure helped reduce missed connections across the system by nearly 25% compared with last year.
AAdvantage Membership Grows More Than 30%
American’s AAdvantage loyalty programme also continued to expand during the quarter.
New member enrollments increased by more than 30% year over year, while spending through the airline’s co-branded credit card partnership with Citi rose 8%.
The airline continues to invest in its premium airport experience, including new and upgraded Admirals Club and lounge facilities at airports including New York JFK and Dallas-Fort Worth, with additional developments planned for Charlotte and Miami.
American has also announced plans to begin installing Starlink high-speed Wi-Fi across its fleet from 2027.
American Expects Up to 19% Revenue Growth in Third Quarter
American expects its revenue momentum to continue during the second half of 2026.
For the third quarter, the airline forecasts year-over-year revenue growth of between 16% and 19%, while capacity is expected to increase between 3% and 5%.
However, higher fuel costs have led the airline to forecast adjusted earnings ranging from a loss of $0.70 per diluted share to a loss of $0.10 for the third quarter.
For the full year, American now expects adjusted earnings or losses per diluted share to range between a $0.65 loss and a $0.65 profit.
The airline ended the second quarter with $11.3 billion in total available liquidity and said it remains focused on reducing debt, lowering interest expenses and improving margins through continued revenue growth and efficiency initiatives.
