NEW YORK, July 24, 2026, 05:09 EDT – American Airlines Group NASDAQ:AAL shares slid 8% after the carrier reported that rising fuel expenses accounted for 95% of its revenue increase, weighing on profits.
- American revised its 2026 forecast to range from a loss of $0.65 per share to a profit of $0.65 per share.
- In the second quarter, fuel growth accounted for 94.7% of the additional revenue.
- The stock finished Thursday at $13.555, down 8.35%, before rising 0.7% in premarket trading.
Shares of American Airlines Group Inc. NASDAQ:AAL dropped 8.35% on Thursday as a spike in fuel costs offset its record revenue. The stock ended the session at $13.555.
Revenue grew by $2.343 billion compared with the previous year, while fuel costs rose $2.218 billion. According to company data, fuel accounted for 94.7% of the additional revenue.
Operating income declined 60.7% to $446 million. Net income decreased 88.2% to $71 million. The margin shrank.
American narrowed its 2026 adjusted EPS forecast to between a $0.65 loss and a $0.65 gain, with a new midpoint at breakeven. The prior range was a $0.40 loss to a $1.10 gain.
Projected fuel expenses for the remainder of 2026 increased by almost $1.6 billion since the beginning of July. Chief Financial Officer Devon May noted the recovery rate was “obviously not 100%.” Reuters
Rising fares provided some support. Passenger yield climbed 11.9%, with passenger unit revenue up 10%. Capacity grew by 5.4%, but load factor declined by 1.5 points.
The margin analysis highlights American’s constrained ability to absorb another fuel price increase.
| Carrier | Q2 adjusted pretax margin | Latest 2026 adjusted EPS outlook |
|---|---|---|
| American Airlines Group Inc. NASDAQ:AAL | 0.9% | Lowered to a range of -$0.65 to +$0.65 |
| Delta Air Lines Inc. NYSE:DAL | 7.7% | Kept at $6.50 to $7.50 |
| United Airlines Holdings Inc. NASDAQ:UAL | 4.8% | Increased to $9.00 to $11.00 |
The airlines rely on their own non-GAAP metrics. American’s margin is based on adjusted pretax income of $144 million and total revenue of $16.735 billion.
American reported adjusted pretax earnings of under a cent per dollar of revenue. In contrast, Delta preserved a significantly higher margin and left its outlook unchanged. United similarly held a stronger margin and increased the lower end of its guidance.
Sensitivity to fuel costs puts the gap into perspective. Every one-cent rise in fuel price increases American’s yearly fuel bill by around $46 million. A 10-cent change annually translates to an extra $460 million, a figure just above the carrier’s second-quarter operating profit.
The company projects fuel costs around $3.75 per gallon in the third quarter. It anticipates revenue growth of 16% to 19%. Adjusted EPS, however, is expected to fall between a loss of $0.70 and a loss of $0.10.
American shares fell 9.5% compared to last Friday’s closing price after Thursday’s decline. Trading volume was approximately 15% higher than the 65-day average. Regular trading ended at 05:09 EDT Friday, and premarket shares increased 0.7% to $13.65.
Oil prices showed limited respite. Brent fell 1.8% early on Friday to $98.87 but remained on track for a 12% gain for the week.
Several external tests are scheduled for next week. U.S. petroleum data will be released on July 29. The advance estimate for second-quarter GDP comes out on July 30, and the Federal Reserve holds its meeting July 28–29.
Risks continue to pull in both directions. A quicker drop in oil prices would benefit Americans’ cost base. Any fresh supply interruptions could push fuel prices higher again. Weaker economic growth could also challenge the recent rise in fares.
Investors will focus on fuel recovery as the key challenge rather than just revenue. Based on the latest outlook, American’s record sales are expected to keep the airline close to breakeven.
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