SYDNEY, April 3, 2026, 07:17 AEDT
American Airlines Group Inc. has some relief in Australia for now, as the nation’s competition watchdog issued interim approval for its trans-Pacific alliance with Qantas. That move lets the two carriers continue coordinating flights while regulators conduct a more thorough assessment. The provisional green light keeps the joint network running on routes between Australia and New Zealand and the United States, Canada, and Mexico.
The current approval runs out on April 16—that’s a problem. With the Australian Competition and Consumer Commission aiming for a final decision in June, there’s a window when the airlines will have to keep pricing, scheduling, and selling long-haul flights without certainty.
This joint business agreement goes beyond a simple codeshare. The airlines are set to align schedules, coordinate seat inventory and capacity, share revenues, jointly market flights, and connect their frequent-flyer programs. The result: customers get access to a wider trans-Pacific network.
American’s move comes as executives work to shield recent revenue gains from a spike in fuel prices. Back on March 17, the airline told investors that first-quarter revenue was pacing over 10% higher than the previous year, though pricier jet fuel would probably push results down to the lower bound of its earlier loss forecast.
Back in January, Chief Executive Robert Isom pointed to “significant upside” for American in 2026, following a year of record revenue, a $2.1 billion reduction in total debt slated for 2025, and $9.2 billion in available liquidity at the end of the year. Those metrics opened up more room for the airline to push into premium cabins, grow partnerships, and boost long-haul routes—until the latest fuel shock arrived. American Airlines Newsroom
This partnership isn’t a recent development. Qantas and American Airlines secured initial ACCC backing back in 2011, then came back for extensions in 2016 and again in 2021. The carriers pitched tighter collaboration to U.S. regulators in 2019, arguing it would enable additional routes, smoother connections, and an upgraded frequent-flyer experience.
The environment’s not easy right now. U.S. wholesale jet fuel prices are running between $4 and $5 a gallon across most areas, according to Reuters. “Even if the U.S. had plenty of jet fuel, it has plenty of airlines too,” Kpler analyst Matt Smith noted. Shares of American dipped roughly 2.7% Thursday; United Airlines was off about 3%, with Delta Air Lines down 1.2%. Reuters
The Australian approval comes with a catch—it’s provisional. The ACCC made clear it can pull the plug on the clearance whenever it sees fit, stressing this doesn’t guarantee a green light for a full five-year extension. Should the final decision go south for the airlines, any plans involving flights past April 16 could need to be rolled back.
