Record revenue but net loss

The American Airlines Group reported a record revenue of 16.3 billion dollars for the third quarter, marking a 19.3% increase compared to the same period last year. However, the company still posted a net loss of 269 million dollars, up from a loss of 114 million dollars in the third quarter of 2025.

Fuel costs drive financial strain

The airline's fuel bill for the third quarter reached about 4.64 billion dollars, an increase of 67.5% compared to the previous year and nearly 1.9 billion dollars higher than the same period in 2025. This surge in fuel costs significantly impacted the company's bottom line despite the revenue growth.

CEO highlights performance and priorities

American Airlines' Chief Executive Robert Isom noted that the company recorded its highest annual revenue growth of his career, driven by the performance of its premium offerings. He emphasized the need to restore profitability and build a stronger airline for the long term, despite the impact of high fuel prices.

Commercial growth across segments

The airline saw growth in multiple areas, with premium offering revenues increasing by 22.9% and economy cabin revenues rising by 19.5%. Internationally, passenger revenue per unit of capacity rose by 16.4%, with Latin America leading the growth at 21.1%. Domestic passenger revenue per unit of capacity also increased by 13.6%.

Loyalty and contracted revenue growth

Revenues from contracted companies increased by 27.6%, marking the sixth consecutive quarter of double-digit growth. New enrollments in the AAdvantage loyalty program also rose by 27.4%, showing continued interest in the airline's frequent flyer program.

Investments in in-flight experience

Despite the financial losses, American Airlines continued to invest in improving the in-flight experience. The company expanded its Starlink connectivity project to its entire mainline fleet in October, and plans to add individual screens to single-aisle aircraft starting in 2028. The company is also upgrading its Admirals Club lounges and other premium spaces.

Outlook for fourth quarter and 2027

American Airlines expects revenue to increase by 19.5% to 22.5% in the fourth quarter of 2026, with a 5.5% to 6.5% increase in seat-miles offered. However, the company still anticipates an adjusted loss of 0.50 to 1.10 dollars per share for the quarter. For the full year, the estimated adjusted loss is between 1 and 1.60 dollars per share, with growth plans for 2027 likely to be slower due to fuel costs.