New York, May 20, 2026, 12:11 EDT
- American Airlines shares gained roughly 6.9% around midday. Airline stocks climbed as crude oil dropped.
- Brent crude dropped roughly 4% after President Donald Trump said U.S.-Iran talks were in their “final stages.”
- American Airlines CEO Robert Isom is set to speak at Bernstein’s Strategic Decisions Conference on May 27.
American Airlines Group Inc. shares jumped close to 7% by midday Wednesday, tracking a big move up across airlines. Dropping oil prices relieved a tough cost squeeze for carriers before the busy summer travel season.
Fuel is now the main swing for American’s 2026 earnings, making the move more important. Brent crude lost over 4% after President Donald Trump said U.S.-Iran talks were in their “final stages,” but Reuters said investors stayed cautious as Middle East supply issues persisted.
American shares were up 83 cents, or 6.9%, to $12.89 on volume topping 31 million shares. The U.S. Global Jets ETF climbed 6.0%. Delta Air Lines jumped 8.5%, United Airlines was up 9.2% and Southwest Airlines rose 5.8%.
American Airlines is back in focus after saying Wednesday that CEO Robert Isom is set to speak at Bernstein’s 42nd Annual Strategic Decisions Conference on May 27 at 9 a.m. ET. Investors will have a chance then to ask about fuel recovery, fares, and capacity.
American Airlines reported record Q1 revenue at $13.9 billion, but the airline is still facing a fuel problem. The carrier posted a GAAP net loss of $382 million. Total debt dropped to $34.7 billion, which is the lowest point since mid-2015. CEO Isom said American was “on track for another record” in the second quarter, adding “demand for our product is growing.” American Airlines Newsroom
Still, the airline lowered its 2026 guidance in April after jet fuel prices surged. Reuters said American now sees 2026 results anywhere from a 40-cent loss per share to a $1.10 profit per share, a drop from its last forecast of $1.70 to $2.70 profit. Adjusted EPS strips out some items.
American Airlines says it’s recovering nearly half of the higher fuel costs in the second quarter with fare hikes and other moves. The company expects to recoup 75% to 85% of the extra fuel bill by the third quarter. Unit revenue is set to jump over 10% in the second quarter.
Travel demand isn’t breaking down the way some expected, UBS analyst Atul Maheswari said. U.S. travel intentions are still above March 2024, sitting close to nine-year highs. Leisure flying plans eased to 82.8%. Business travel dropped to 32.6%, according to Investors Business Daily.
Airlines are still able to push fares higher, airfare numbers show. Airline fares jumped 20.7% from last April, according to the Labor Department. Prices were up 2.8% in April from March, seasonally adjusted.
The rally looks shaky. Reuters said Citi now sees Brent going to $120 a barrel soon, and analysts at Wood Mackenzie say prices might get close to $200 if the Strait of Hormuz remains mostly closed through year-end. If fuel costs jump again, American may have to push fares higher or scale back flights, either of which could hit demand.
Chip stocks pushed Wall Street up Wednesday, with Nvidia earnings on deck. The 10-year Treasury yield pulled back from a 16-month peak, giving cyclical names a lift. But most of the action in American was tied to oil.
The stock is riding the idea that cheaper crude gives U.S. carriers some breathing room. Investors will get the next update next week, when Isom talks about fuel costs, fares and summer demand.
