NEW YORK, May 28, 2026, 06:03 (EDT)
- FedEx Freight is set to join the Dow Jones Transportation Average, replacing American Airlines ahead of the June 1 open, according to S&P Dow Jones Indices.
- American finished Wednesday at $14.92, up 0.5%. Shares trailed United, Delta and Southwest even as airlines traded higher.
- American Airlines CEO Robert Isom said demand is still strong enough for the carrier to stick with its cut profit target for 2026, even though fuel costs are now higher.
American Airlines Group got dropped from the Dow Jones Transportation Average, according to S&P Dow Jones Indices. The index operator said Wednesday that FedEx Freight Holding will take its spot before the market opens June 1. The move comes ahead of Thursday’s regular session.
The optics are a bigger deal than the index impact. S&P Dow Jones Indices said American’s weighting in the price-weighted index was under half a percent, calling its effect on the average “immaterial” given the low share price. PR Newswire
U.S. markets hadn’t opened yet. The regular session on the Nasdaq is from 9:30 a.m. to 4 p.m. Eastern, and May 28 does not show up on the list of 2026 U.S. equity-market holidays.
American traded at $14.92, 0.5% higher than its last close, market data showed. United Airlines jumped 6.3%, Delta Air Lines was up 3.0%, and Southwest Airlines added 3.3%. American lagged the group, as peers rallied on expectations that strong travel demand will help offset rising costs.
Test now is how the stock holds up. CEO Isom, speaking at a Bernstein investor event Wednesday, said American is “not making any changes” to its 2026 outlook. That’s despite the airline expecting fuel to tack on $4 billion to $5 billion in costs this year. Reuters
American is roughly 80% booked for the second quarter, CEO Isom said. Corporate travel is up 13% from last year, while leisure demand remains strong. The carrier expects second-quarter revenue to climb 15% with around 5% more capacity, which works out to about 10% unit revenue growth. That means American is seeing more revenue per seat-mile.
American now expects full-year results between a loss of 40 cents a share and earnings of $1.10, cutting its earlier range of $1.70 to $2.70 a share. The company said in April that jet fuel costs, which usually make up about a quarter of airline operating expenses, had jumped after war disruptions in Iran and could add over $4 billion to its fuel bill.
American still lags Delta and United in profits, a difference investors track closely. CEO Isom told analysts premium seats will grow twice as fast as main-cabin, while lie-flat seats are set to jump almost 50% in three years. The company wants to close the profit gap.
American said Tuesday it plans to put Starlink Wi-Fi on over 500 narrow-body planes, starting in Q1 of 2027. Chief Customer Officer Heather Garboden said the carrier wants “world-class partners like Starlink,” as more flyers expect speedy in-flight internet. The move this week adds to changes in the onboard product. American Airlines Newsroom
United’s CEO Scott Kirby pushed back on consolidation talk Wednesday after American turned down a possible merger overture. “We clearly don’t have” a willing partner, Kirby said, adding United isn’t planning to pursue a deal “for the foreseeable future.” Reuters
Pressure from higher fuel costs could outpace improvements in revenue. If oil climbs, if fare hikes start to slow bookings, or if the “K-shaped” demand Isom mentioned means budget flyers don’t show up, American could find it hard to keep margins up—even with better premium sales. Reuters
Investors don’t have much time. The DJTA will drop the stock on June 1. The next look at American will be if summer bookings give it room to hold pricing, cover fuel, and hit profit targets.
