American Airlines Just Got Hit With a Mixed Bag of News
Newser • • business
Key Points:
- American Airlines lowered its 2026 profit forecast, now expecting a loss or profit range of 65 cents per share, down from an earlier projection of up to $2.70 per share, citing rising fuel costs not fully offset by higher ticket prices.
- The airline's stock dropped about 8% following the warning, with the current quarter expected to incur an adjusted loss of 70 to 10 cents per share, missing Wall Street's profit estimate of 28 cents despite anticipated revenue growth of 16% to 19%.
- Second-quarter results showed record revenue of $16.74 billion, slightly above estimates, and adjusted earnings of 15 cents per share, but net profit fell 88% year-over-year to $71 million.
- American Airlines plans to increase capacity by up to 5% this quarter and continue efforts to close the profit gap with competitors Delta and United, including investments in new long-haul jets and more premium seating.
- CEO Robert Isom acknowledged ongoing challenges but emphasized the company's real progress toward its long-term goals.
