NEW YORK, March 25, 2026, 09:49 EDT
American Airlines Group (AAL) popped 3.6% to $11.10 early Wednesday, with airline stocks broadly higher as crude tumbled on optimism for a possible U.S.-Iran thaw. United Airlines added 3.7%, Delta Air Lines ticked up 2.0%. Brent crude slipped roughly 4%, hovering close to $100 a barrel.
Fuel now stands as airlines’ second-biggest expense, right behind labor, typically eating up 20% to 25% of operating costs—and most U.S. carriers have dropped hedging. American Airlines last week reported that pricier fuel had tacked on about $400 million to its first-quarter costs since late January. Still, the company raised its revenue growth target to above 10% and expects its adjusted loss to hit the lower end of its prior forecast. CEO Robert Isom pointed to stronger-than-anticipated revenue trends, saying that momentum carried over into April and May.
Investors are balancing robust demand with the risks tied to fuel prices. American doesn’t have the same buffer as Delta, which operates the Monroe refinery outside Philadelphia. Instead, American sources fuel on the open market—so when the crack spread widens, meaning the gap between crude and refined products like jet fuel opens up, American’s exposure increases.
Delta is basically pocketing the crack spread on some of its own fuel, Morningstar’s Nicolas Owens pointed out, easing the blow from soaring refining margins. CEO Ed Bastian described the refinery as a “meaningful hedge”—something American lacks. Reuters
United is already plotting its next move. Last week, Chief Executive Scott Kirby warned the airline could slash roughly five percentage points of its scheduled capacity this year if fuel prices don’t ease. He also pointed to steady demand, saying it’s letting airlines push fares higher to offset some of those added costs.
American said Tuesday it added Mary Dillon—who previously led Foot Locker and Ulta Beauty—to its board, where she’ll sit on the compensation and governance committees. CEO Isom pointed to her background in operations, commercial strategy, and marketing as assets for the company.
The stock’s been tracking oil’s moves. American jumped 3.66% Monday—crude had dropped over 10% after President Donald Trump announced a hold on strikes against Iranian power plants. But Tuesday saw Wall Street retreat, oil rebounding, and investors unsure if diplomacy would stick.
The rally isn’t locked in. Amundi’s Amelie Derambure noted traders are eyeing a “relief rally,” but ING’s Chris Turner thinks it’s “too early” to bank on a sharp decline in energy prices. Should crude rebound, the fuel costs for American will rise right alongside, bringing back the margin squeeze management just highlighted last week. Reuters
