NEW YORK, June 5, 2026, 07:03 (EDT)
- American Airlines shares traded flat in premarket, sticking close to Thursday’s close after falling for four sessions in a row.
- The carrier has made some temporary route cuts for August and September, with higher jet fuel costs squeezing margins.
- U.S. stock-index futures traded mixed ahead of the May jobs numbers, with airlines still caught between fuel and rates concerns.
American Airlines Group Inc. shares hovered near flat in early premarket trade Friday, steady after Thursday’s steep loss, as the airline moved to cut some summer flights due to high jet fuel prices. AAL was at $13.32 at 7:01 a.m. EDT, up 0.1% before the Nasdaq opened, after falling 1.99% to close at $13.30 on Thursday. Premarket trades are done before the exchange opens.
The timing is key. Nasdaq trades from 9:30 a.m. to 4 p.m. Eastern, with markets set to open Friday as investors kept an eye on airline fuel exposure, the May jobs report and weaker S&P 500 and Nasdaq futures.
American Airlines told CBS News it changed schedules for some routes in August and September due to higher fuel prices. The airline said these moves aren’t permanent. CBS said the cuts affect flights from Los Angeles to Cleveland, Columbus, Pittsburgh, and Washington Dulles, and from Charlotte to Ontario and Sacramento.
American told The Associated Press that travelers on affected flights will get new options or a refund. The airline said it does not plan to end the routes for good, pointing to industry shifts as airlines face rising fuel costs.
Jet fuel is a key part of the business. Last week, the average price was close to $142 a barrel, according to AP, up from about $99 before U.S. and Israeli strikes on Iran in late February rattled energy markets. Fuel makes up between 25% and 30% of airline operating expenses. Even small cuts to routes may point to flying that isn’t viable at these prices.
AAL kept dropping this week, with the stock down each day from Monday to Thursday. Shares started the week at $14.64 and finished Thursday at $13.30, off about 9.2% so far this week through June 4. Volume on Thursday hit 70.86 million shares.
American’s latest forecast leaves investors guessing. In April, the company said it expects second-quarter revenue to rise 13.5% to 16.5% from a year ago. Available seat miles, a measure of airline capacity, are projected up 4% to 6%. American is guiding for adjusted earnings per share of anywhere from a 20-cent loss to a 20-cent profit for the quarter. For the full year, it sees adjusted earnings between a 40-cent loss and a $1.10 profit.
American Airlines CEO Robert Isom told the Bernstein conference last week the airline isn’t changing its outlook, despite $4 billion to $5 billion in extra fuel expenses expected this year. Isom said corporate travel is up 13% from a year ago and leisure demand is still strong. But he also said there’s “no doubt” demand has a K-shaped split, with higher-income travelers showing more strength. Reuters
American’s profit gap with rivals is still in focus. Reuters said American has lagged Delta Air Lines and United Airlines in profitability for years. Now it’s pushing more on premium seats and upgrades to try to boost revenue. On Thursday, Southwest shares were up 1.08% and Delta added 0.93%, while United dipped 0.19% and American lost 1.99%, MarketWatch data showed.
Broader markets weren’t much help early. Reuters said Dow futures edged up 0.22% at 5:14 a.m. ET, but S&P 500 futures slipped 0.34% and Nasdaq 100 futures dropped 0.82%. Traders were waiting for the May payrolls data. Deutsche Bank strategist Jim Reid said the jobs numbers would keep the focus on inflation for the Federal Reserve if the labor market stayed steady.
But it’s not all downside. If fuel costs come down and bookings hold up, cuts to routes might just show airlines are being disciplined, not signaling trouble for demand. The bigger risk is if fuel stays high, lower-income travelers drop off, and schedules shrink more, which could squeeze margins for American before it catches up to Delta and United’s profits.
Airline leaders are set to gather in Rio de Janeiro from June 6 to June 8 for the International Air Transport Association summit. Reuters said the talks will likely focus on fuel prices, route detours and aircraft delays. Moody’s lowered its global airline sector outlook to negative, pointing to fuel costs from the Iran war and Strait of Hormuz issues as threats to this year’s operating profit.
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