American Airlines cuts profit outlook

American Airlines cut its 2026 profit outlook on April 23 after warning that higher jet-fuel costs are overwhelming strong travel demand. (americanairlines.gcs-web.com) (money.usnews.com) The airline said it now expects full-year adjusted earnings between a loss of $0.40 a share and a profit of $1.10 a share. In January, it had forecast $1.70 to $2.70 a share. (americanairlines.gcs-web.com) (cnbc.com) American reported record first-quarter revenue of $13.9 billion, but still posted a net loss of $382 million, or $0.58 a share. Excluding special items, the loss was $267 million, or $0.40 a share. (news.aa.com) (americanairlines.gcs-web.com) The pressure point is fuel. American told investors its jet-fuel bill could rise by more than $4 billion this year if second-quarter prices stay around $4 a gallon. (money.usnews.com) (marketscreener.com)) Jet fuel is usually about a quarter of an airline’s operating expenses, and carriers sell many tickets months in advance. That leaves less room to quickly pass a sudden fuel spike on to travelers. (money.usnews.com) (cnbc.com) Reuters reported the latest fuel shock was tied to the Iran war and disrupted traffic through the Strait of Hormuz, a critical route for global oil supplies. American said it expects to recover only about half of the extra fuel cost in the second quarter through fares and schedule changes. (wsau.com) (aerotime.aero) The outlook cut puts American in line with other carriers that have been revising forecasts as costs rise faster than fares. CNBC said analysts had already been trimming industry estimates before American reported. (cnbc.com) (money.usnews.com) American also said it ended the quarter with total debt of $34.7 billion, its lowest since mid-2015, even as the fuel spike darkened the rest of 2026. (news.aa.com)