European Investor
22 Oct 2026, 15:49
American Airlines Rises 3.3% as Record Revenue Growth Offsets Heavy Fuel-Cost Pressure
American Airlines (NASDAQ: AAL) shares rose about 3.3% after the carrier reported record third-quarter revenue growth, with strong premium and corporate travel demand helping offset a sharp increase in fuel costs.
Third-quarter revenue reached $16.3 billion, up 19.3% year over year and above the high end of the company’s prior guidance range. Premium revenue increased 22.9%, while Main Cabin revenue rose 19.5%. Total unit revenue increased 14.5%.
Despite the strong top line, American posted a GAAP net loss of $269 million, or $0.41 per diluted share, and an adjusted net loss of $182 million, or $0.28 per share. Fuel expense increased by $1.9 billion, or 67.5%, from a year earlier as the average fuel price climbed to $3.85 per gallon.
Demand remained particularly strong in higher-value segments. Managed corporate revenue increased 27.6% year over year, while international passenger unit revenue rose 16.4%. Premium passenger unit revenue increased 18.5%, outpacing Main Cabin growth.
American expects another quarter of strong revenue growth, forecasting fourth-quarter revenue to increase 19.5% to 22.5%. However, the company expects fuel prices of about $4.70 per gallon, which could increase fourth-quarter fuel expense by roughly $2.8 billion year over year. Adjusted loss per share is projected at $0.50 to $1.10 for Q4, with full-year adjusted loss per share of $1.00 to $1.60.
The 3.3% gain appears to reflect investor focus on the exceptional revenue momentum, premium demand and improving commercial execution, despite substantial fuel-cost pressure and continued near-term losses.
American Airlines (NASDAQ: AAL) shares rose about 3.3% after the carrier reported record third-quarter revenue growth, with strong premium and corporate travel demand helping offset a sharp increase in fuel costs.
Third-quarter revenue reached $16.3 billion, up 19.3% year over year and above the high end of the company’s prior guidance range. Premium revenue increased 22.9%, while Main Cabin revenue rose 19.5%. Total unit revenue increased 14.5%.
Despite the strong top line, American posted a GAAP net loss of $269 million, or $0.41 per diluted share, and an adjusted net loss of $182 million, or $0.28 per share. Fuel expense increased by $1.9 billion, or 67.5%, from a year earlier as the average fuel price climbed to $3.85 per gallon.
Demand remained particularly strong in higher-value segments. Managed corporate revenue increased 27.6% year over year, while international passenger unit revenue rose 16.4%. Premium passenger unit revenue increased 18.5%, outpacing Main Cabin growth.
American expects another quarter of strong revenue growth, forecasting fourth-quarter revenue to increase 19.5% to 22.5%. However, the company expects fuel prices of about $4.70 per gallon, which could increase fourth-quarter fuel expense by roughly $2.8 billion year over year. Adjusted loss per share is projected at $0.50 to $1.10 for Q4, with full-year adjusted loss per share of $1.00 to $1.60.
The 3.3% gain appears to reflect investor focus on the exceptional revenue momentum, premium demand and improving commercial execution, despite substantial fuel-cost pressure and continued near-term losses.
