NEW YORK, July 27, 2026, 07:06 EDT — U.S. premarket
- Shares of American Airlines Group Inc. NASDAQ:AAL gained 3.9% during early premarket hours.
- Brent crude dropped 8.8% to $88.30, following a suspension of hostilities between the United States and Iran.
- American’s revenue rise in the second quarter was matched by a 94.7% increase in fuel costs.
American shares rose early, mirroring gains across airline stocks as oil prices fell. The advance came after the stock dropped 8.4% on Thursday when the airline cut its outlook.
The numbers highlight the vulnerability. The $2.218 billion rise in fuel costs represented 94.7% of the $2.343 billion boost in revenue.
Revenue hit an all-time high of $16.735 billion, but adjusted operating margin declined to 2.7% from 8.2%.
| American Q2 metric | 2026 | 2025 | Change |
|---|---|---|---|
| Total operating revenue | $16.735 billion | $14.392 billion | +16.3% |
| Fuel and related taxes | $4.881 billion | $2.663 billion | +83.3% |
| Adjusted operating margin | 2.7% | 8.2% | -5.5 points |
| Adjusted net income | $99 million | $628 million | -84.2% |
Corporate data; adjusted metrics do not include net special items.
The stock closed at $14.48 on Friday, falling 3.3% over the week. A 6.8% gain on Friday recouped only a portion of Thursday’s loss.
American continues to lag its nearest network competitors on margin. United Airlines Holdings Inc. NASDAQ:UAL recorded 5.4%, while Delta Air Lines Inc. NYSE:DAL achieved 8.8%.
Devon May, the Chief Financial Officer, highlighted the timing issue. “If we had guided on the same day as Delta, we’d have been guiding up for the year.” Reuters
Fuel prices rose at a quicker pace than fares. Each one-cent rise in American’s average fuel cost lifts annual expenses by roughly $46 million.
An increase of 10 cents would translate to an estimated cost of about $460 million. The majority of this amount would impact pretax profits.
Demand remained strong. Premium passenger unit revenue increased by 13.4%, and managed corporate revenue was up 26%.
American projects third-quarter revenue to rise between 16% and 19%. Nevertheless, it anticipates an adjusted per-share loss ranging from $0.70 to $0.10.
The outlook for the entire year now ranges from a loss of 65 cents to a gain of 65 cents per share, with the midpoint at break-even.
The projection is based on fuel costing about $3.75 per gallon, in line with the July 21 curve. This forecast does not reflect Monday’s drop in oil prices.
Key events come in rapid succession. Durable-goods numbers land Monday, the Federal Reserve meets Wednesday, and PCE inflation figures are expected Thursday.
Fuel price volatility continues to pose concentrated risks. Shipping activity through Hormuz maintained subdued levels, and freight rates require additional weeks or months to adjust.
The investment outlook now hinges on duration. A single day’s decline in oil prices offers some benefit, but ongoing relief is necessary to restore American’s narrow profit margins.
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