TLDR
- American Airlines delivered a Q1 adjusted loss of 40 cents per share, surpassing Wall Street’s forecast of a 47-cent loss
- Quarterly revenue reached an all-time high of $13.91 billion, climbing 10.8% year-over-year and exceeding the $13.79 billion estimate
- Per-gallon fuel expenses surged 10.7% to $2.75, with projections indicating a climb to $4 per gallon
- Annual earnings guidance of -$0.40 to +$1.10 per share exceeded Wall Street’s projected loss of $0.65 per share
- AAL stock gained approximately 2% in premarket hours, though shares remain down 25% year-to-date
American Airlines delivered a first-quarter adjusted loss of 40 cents per share, performing better than Wall Street’s anticipated 47-cent loss. The carrier achieved record quarterly revenue of $13.91 billion, representing a 10.8% increase from the prior-year period and surpassing the consensus estimate of $13.79 billion.
Revenue passenger miles climbed 3.9% to reach 58.55 billion. Meanwhile, available seat miles expanded at a slower pace of 3%, totaling 72.01 billion, which resulted in the load factor improving by 0.7 percentage points to 81.3%.
This quarter represents the third unprofitable period within the last five quarters for the airline, though the per-share loss showed improvement compared to the 59-cent loss reported in the corresponding quarter of the previous year.
American Airlines Group Inc., AAL
Shares climbed approximately 2% in premarket activity — providing some relief after a challenging year that has witnessed AAL decline 25% heading into Wednesday’s market close.
Fuel expenses continue to dominate concerns. Average per-gallon fuel costs increased 10.7% during Q1 to $2.75. Looking ahead, the company’s projections assume this figure will escalate substantially to $4 per gallon.
$4 Billion Fuel Cost Surge Impacts Annual Projections
American disclosed an anticipated increase exceeding $4 billion in fuel-related costs within its annual forecast. This represents a substantial burden for any airline operator.
Notwithstanding this significant challenge, the carrier indicated that the midpoint of its annual guidance remains approximately level with 2025 results. The company established full-year guidance spanning -$0.40 to +$1.10 per share.
Wall Street analysts had previously estimated a full-year loss of 65 cents per share, based on FactSet data. Therefore, despite the fuel cost alert, American’s guidance proved more favorable than market expectations.
The airline also projects second-quarter revenue growth ranging between 13.5% and 16.5% compared to the year-ago period — potentially setting another record. The prevailing FactSet Q2 consensus of $16.37 billion represents 13.8% growth.
Industry-Wide Pressure Impacts Airline Sector
American follows other prominent U.S. airlines in revising or withdrawing full-year forecasts. The fuel cost spike connected to Iranian geopolitical tensions has compelled carriers to reassess capacity plans and fare strategies.
American indicated expectations for sustained robust demand and intends to “recapture elevated fuel prices” — terminology that generally suggests upcoming ticket price increases.
The U.S. Global Jets ETF has declined 7.8% year-to-date in 2026, contrasting with the S&P 500’s 4.3% gain during the identical timeframe.
AAL stock traded approximately 1.3% higher in recent premarket sessions on Thursday following the earnings release.
