American Airlines posted record first-quarter revenue but sharply cut its full-year earnings outlook on Thursday, warning that surging jet fuel costs will add more than $4 billion to the carrier’s expenses in 2026.
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The airline’s first-quarter earnings release showed revenue of $13.91 billion, a 10.8 percent increase over the same period in 2025 and the highest first-quarter total in the company’s history. The adjusted loss for the quarter came in at 40 cents per share, narrower than the 47-cent loss analysts had projected and an improvement from the 59-cent adjusted loss recorded a year earlier.
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Despite the stronger-than-expected quarter, American revised its full-year 2026 guidance to a range of a 40-cent-per-share loss at the low end and $1.10 per share profit at the high end. That is a significant step down from the $1.70 to $2.70 per-share profit forecast the company issued in January. CEO Robert Isom said the midpoint of the revised range is roughly flat compared to 2025 results, even after absorbing the fuel cost surge. Isom noted the company still expects modest profitability for the year under current fuel price assumptions and pointed to improving demand and rising customer satisfaction scores as evidence of the airline’s underlying strength.
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Jet fuel, which typically accounts for roughly a quarter of an airline’s operating expenses, has nearly doubled in price since conflict in the Middle East escalated. American’s first-quarter earnings release showed fuel added approximately $400 million in extra expense during the January-to-March period alone, with the full-year hit projected to exceed $4 billion. The airline is assuming a fuel cost of about $4.00 per gallon for the second quarter.
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To manage the cost pressure, American is trimming planned capacity growth. The company said second-quarter seat miles are running about one percentage point below its initial plans, and additional cuts are expected after the summer peak season. Still, American projected second-quarter total revenue growth of 13.5 to 16.5 percent year-over-year and an adjusted earnings range of a 20-cent loss to a 20-cent profit — ahead of analyst consensus.
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The airline said it expects to recoup close to half of the higher fuel costs in the second quarter through pricing and demand, with recovery climbing to 75 to 85 percent in the third quarter and potentially exceeding 90 percent if elevated prices persist through the fourth quarter.
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American also reported that its total debt at the end of the first quarter fell below $35 billion for the first time since mid-2015, reaching $34.7 billion. The airline has reduced its debt load by nearly $20 billion since its pandemic-era peak of $54 billion in mid-2021, a milestone CFO Derek Kerr described as a sign of the carrier’s improving financial footing.
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For travelers in the Upstate, the earnings report carries direct relevance. American Airlines operates eight nonstop routes out of Greenville-Spartanburg International Airport, making it the single largest carrier at GSP by departures. Connections to Charlotte, Dallas-Fort Worth, Miami, Philadelphia, New York, Chicago, Washington and Baton Rouge all run through American’s network. Capacity cuts flagged in Thursday’s report could eventually affect regional service frequency, and higher fuel costs typically filter through to ticket prices over subsequent booking cycles. AAA data shows regular gasoline in Spartanburg averaged $3.647 per gallon as of April 23 — a reminder that the same energy market pressures driving American’s costs are being felt at ground level across South Carolina.
