American Airline Cuts Outlook After Jet Fuel Shock Bill

American Airlines slashed its full-year outlook on Thursday morning, warning it could post a loss in 2026 as the Iran-U.S. war, which sent jet fuel prices soaring, adds roughly $4 billion in fuel costs.

The airline now expects full-year results ranging from a 40-cent loss to a $1.10 profit, down from its earlier forecast of $1.10 to $2.70 in earnings per share.

"Based on the forward fuel curve and the current revenue outlook, the midpoint of the full-year guidance is expected to be approximately flat to 2025, despite a greater than $4 billion increase in expense related to higher prices for jet fuel," American stated in an earnings release.

However, American beat Bloomberg Consensus first-quarter estimates, posting a smaller-than-expected adjusted loss and stronger-than-forecast revenue.

Management said the airline is trying to shield the company as elevated jet fuel costs erode profits, while hoping that premium and international demand can offset some of the impact through higher fares and baggage prices.

"American delivered record revenue in the first quarter, and we're on track for another record in the second quarter," American CEO Robert Isom stated in the release.

Snapshot of the 1Q26 results:

Elsewhere in the airline industry, the Trump administration is considering an emergency package for bankrupt Spirit Airlines that could give the federal government 90% control. The airline had been planning to emerge from bankruptcy, but the fuel shock sent it into a tailspin in recent weeks, with reports that creditors were planning to liquidate. This complicates matters for the administration, as 14,000 jobs would be at risk.

Other budget carriers met with Transportation Secretary Sean Duffy earlier this week to discuss their financial situation amid elevated jet fuel costs.

As we've previously noted, Delta Air Lines is America's standout carrier because it's the only one with an in-house refinery that can properly weather the fuel shock.