American Airlines (AAL), the world’s largest carrier, has posted a financial loss for this year’s third quarter due to the rising cost of jet fuel.
The Fort Worth, Texas-based airline announced an earnings per share (EPS) loss of $0.28 U.S., which was better than the loss of $0.35 U.S. that Wall Street had expected.
Revenue in the July through September quarter totaled $16.34 billion U.S., which beat the consensus estimate of $16.22 billion U.S. Sales were up 19.3% from a year earlier.
Management at American Airlines blamed the latest results on soaring jet fuel costs, which have steadily risen due to the Iran war.
Jet fuel is an airlines’ biggest cost after labour. In the third quarter, American’s fuel bill rose 67.5% year-over-year to $4.64 billion U.S.
Due to the increasing costs of fuel, American Airlines forecast that it will lose between $0.50 U.S. and a $1.10 U.S. a share in the current fourth quarter.
For the entire year, American said that it expects to lose between $1 U.S. and $1.60 U.S. a share as it grapples with high fuel costs.
Management said that they plan to slow capacity growth in 2027 and are exploring all options until jet fuel prices move lower.
American Airlines is the fourth major U.S. carrier to lower its forecast for 2026 due to jet fuel.
Rising fuel costs have raised airfares in the U.S. an average of 20% this year as airlines pass a portion of the cost onto travelers.
AAL stock was down 4% on news of its latest financial results. Over the past year, the airline’s stock has risen 1% to trade at $12.24 U.S. per share.
