American Airlines reported record third-quarter revenue of $16.3 billion in 2026, but a sharp rise in fuel costs left the carrier with a net loss of $269 million.
Revenue increased 19.3% year on year, exceeding the airline’s previous guidance. Fuel expense, however, rose by $1.9 billion, or 67.5%, as American paid an average of $3.85 per gallon during the quarter.
The airline also warned that elevated fuel prices are expected to slow its network growth in 2027 compared with 2026.
Premium and business travel drive revenue gains
American recorded revenue growth across all regions and cabins. Premium revenue increased 22.9%, while Main Cabin revenue rose 19.5%.
Managed corporate revenue grew 27.6%, marking a sixth consecutive quarter of double-digit growth. Total revenue per available seat mile, which measures revenue relative to capacity, increased 14.5%.
International passenger revenue per available seat mile rose 16.4%, led by Latin America at 21.1%. The Atlantic and Pacific regions recorded increases of 14.5% and 11.3%, respectively.
“American delivered record third-quarter revenue and the strongest year-over-year revenue growth in my career, with premium performance leading the way,” said CEO Robert Isom.
“While historically high fuel prices significantly impacted our financial results, our focus remains on restoring profitability and building a stronger American for the long term.”
| Q3 2026 measure | Result |
|---|---|
| Total revenue | $16.3 billion |
| Revenue growth year on year | 19.3% |
| Reported net loss | $269 million |
| Adjusted net loss | $182 million |
| Fuel expense increase year on year | $1.9 billion |
| Available liquidity at quarter-end | $11.8 billion |
The adjusted loss excludes $87 million in net special items after tax. Unit costs excluding fuel, special items and profit sharing rose 3%.
More premium seats and expanded Starlink plans
American plans to increase premium seating through new aircraft deliveries and cabin refurbishments.
The airline says premium products currently generate roughly half its ticket revenue from approximately 30% of seats. Its narrowbody refurbishment programme is expected to bring the premium share of seating on those aircraft to 40% in the coming years.
Connectivity is another focus. After announcing plans in May to equip more than 500 aircraft with Starlink Wi-Fi, American expanded the commitment on 8 October to cover its entire mainline fleet, comprising more than 1,000 aircraft.
The airline also plans to introduce seatback entertainment screens on new narrowbody deliveries from 2028. Lounge investment continues, with American reporting more openings and renovations underway than at any previous point in its history.
AAdvantage membership and hub performance improve
New AAdvantage enrolments increased 27.4% year on year during the quarter, while spending on American’s Citi co-branded credit cards grew by nearly 10%.
At Dallas Fort Worth, changes to the timing and grouping of flights helped produce record passenger volumes, fewer missed connections and fewer mishandled bags, according to the airline.
American is also strengthening schedules in Chicago, Miami, Philadelphia and Phoenix.
Higher fuel prices weigh on the outlook
American expects fourth-quarter revenue to increase by 19.5% to 22.5% year on year, with capacity rising by 5.5% to 6.5%.
However, its forecast assumes an average fuel price of approximately $4.70 per gallon, based on the forward fuel curve as of 19 October. At that level, the airline expects quarterly fuel costs to be around $2.8 billion higher than a year earlier.
American forecasts an adjusted fourth-quarter loss of $0.50 to $1.10 per diluted share and a full-year adjusted loss of $1.00 to $1.60 per share.
The company says it will continue investing in passenger services while pursuing efficiency savings and reducing debt.
