TLDR

  • The carrier reported a Q1 adjusted loss of 40 cents per share, surpassing analyst projections of a 47-cent deficit
  • Quarterly revenue reached an all-time high of $13.91 billion, climbing 10.8% year-over-year and exceeding the $13.79 billion forecast
  • Average fuel costs increased 10.7% to $2.75 per gallon, with management projecting an escalation to $4 per gallon
  • Annual earnings outlook of -$0.40 to +$1.10 per share exceeded analyst projections of a -$0.65 deficit
  • Shares gained approximately 2% in premarket hours, following a 25% decline year-to-date through Wednesday’s session

American Airlines delivered first-quarter results that showed an adjusted loss of 40 cents per share, performing better than Wall Street’s projection of a 47-cent deficit. The carrier’s revenue reached an all-time quarterly high of $13.91 billion, representing a 10.8% increase from the prior-year period and surpassing analyst estimates of $13.79 billion.

Traffic volumes increased 3.9% to 58.55 billion revenue passenger miles during the period. Available capacity expanded at a slower pace of 3% to 72.01 billion available seat miles, resulting in a load factor improvement of 0.7 percentage points to 81.3%.

This quarter represented the carrier’s third deficit across the past five reporting periods, though the per-share loss showed improvement compared to the 59-cent loss recorded in the year-ago quarter.


AAL Stock Card
American Airlines Group Inc., AAL

Shares advanced in premarket activity — gaining roughly 2% — following a challenging year that saw AAL decline 25% through Wednesday’s closing bell.

Fuel expenses continue to dominate the narrative. The average cost per gallon of fuel surged 10.7% during Q1 to $2.75. Management’s forward-looking assumptions now incorporate a significant jump to $4 per gallon.

$4 Billion Fuel Cost Increase Shapes Annual Projections

American highlighted an increase exceeding $4 billion in fuel-related costs within its annual forecast. This figure represents a substantial burden for any airline operator.

Even accounting for this pressure, management indicated that the midpoint of its annual guidance remains approximately level with 2025 performance. The full-year outlook spans a range of -$0.40 to +$1.10 per share.

Wall Street analysts had anticipated an annual loss of 65 cents per share, based on FactSet data. The carrier’s guidance range therefore exceeded expectations despite the fuel cost warning.

The airline projects second-quarter revenue expansion between 13.5% and 16.5% compared to the prior year — potentially setting another record. The current FactSet Q2 consensus of $16.37 billion would represent 13.8% growth.

Industry-Wide Headwinds Impact Carriers

American follows other prominent U.S. airlines in adjusting or pausing annual guidance. The fuel cost spike connected to tensions involving Iran has compelled carriers to reassess capacity plans and pricing strategies.

Management indicated expectations for robust demand while planning to “recapture elevated fuel prices” — terminology that generally suggests upcoming fare adjustments.

The U.S. Global Jets ETF has declined 7.8% during 2026 to date, contrasting with a 4.3% advance in the S&P 500 across the identical timeframe.

AAL shares traded approximately 1.3% higher in recent premarket activity Thursday following the earnings release.