NEW YORK, May 27, 2026, 18:02 (EDT)
American Airlines Group Inc. stock ticked up about 0.5% to $14.92 on Wednesday. CEO Robert Isom told investors that growth in revenue, premium bookings, and business travel was offsetting higher fuel costs, so the airline is keeping its full-year guidance flat. Shares traded between $14.85 and $15.39, with close to 88.8 million shares changing hands.
Airlines are trading more directly on fuel moves now. Shares in fuel-sensitive names got a lift as oil fell after hints of movement in U.S.-Iran talks. Brent crude lost about 5%, settling at $94.29 a barrel.
American Airlines isn’t changing its forecast despite facing $4 billion to $5 billion more in fuel bills this year, CFO Isom told the Bernstein Strategic Decisions Conference. “No doubt” demand is showing a K-shaped trend, Isom said, with wealthier flyers spending more than those with lower incomes. Still, he said American is about 80% booked for the second quarter, corporate travel has climbed 13% from last year, and he expects Q2 revenue to increase 15% on roughly 5% more capacity—more seats and flights. Reuters
American had lowered its 2026 outlook last month, now seeing a loss of 40 cents a share to earnings of $1.10 a share. That’s down from a previous forecast for $1.70 to $2.70 profit. Still, Isom said the carrier expects to “repeat the profitability we had last year.” Reuters
American’s move lagged the airline sector Wednesday, with United Airlines up 6.3%, Delta Air Lines climbing 3.0%, and Southwest Airlines adding 3.3%. The broader market showed small or no gains.
UBS lifted its price target on American Airlines to $18 from $16 and stuck with its Buy call. The broker sees a possible Middle East conflict resolution as a positive driver for airline stocks, according to .
American is working to narrow its revenue and profit gap with Delta and United by pushing more expensive seats and better cabins. Isom said the airline plans premium seating growth at twice the pace of main-cabin seating and expects lie-flat seats to jump almost 50% in the next three years.
American’s move goes beyond seat count. The airline said Tuesday it plans to put Starlink internet on over 500 narrowbody planes, starting in the first quarter of 2027. That includes new Airbus A321XLR and A321neo jets. Chief Customer Officer Heather Garboden said American wanted “world-class partners like Starlink.” Jason Fritch at SpaceX said Starlink would deliver “fast and reliable internet” for travelers and crew. American Airlines Newsroom
United Airlines isn’t planning any M&A right now. CEO Scott Kirby said Wednesday the airline will not push for consolidation “for the foreseeable future.” That comments comes after American Airlines turned down an approach. American CEO Isom had earlier dismissed a merger as anti-competitive and not good for customers. Reuters
The fuel relief could be short-lived. If U.S.-Iran negotiations break down or energy prices jump, American might need to push more fuel costs into ticket prices. That would come as CEO Isom already called demand uneven among income levels.
American is getting some credit in the market right now for steady bookings and a better outlook for revenue per seat. The big question is if those numbers can hold up after the summer travel season, especially if oil prices don’t take another jump.
