American Airlines Group (AAL) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached a record $16.335B, up 19.3% YoY and above guidance; GAAP net loss was $269M and adjusted net loss was $182M as fuel and operating costs outweighed stronger revenue.

• Adjusted diluted loss per share was $0.28; GAAP diluted loss per share was $0.41.

• Premium and managed corporate demand led growth, while management expects 2027 network growth to slow amid elevated fuel prices.

Financial highlights

• Passenger revenue rose 19.5% to $14.900B; cargo revenue increased 29.1% to $274M and other revenue rose 15.2% to $1.161B.

• Operating income was $115M versus $151M YoY; operating expenses increased 19.8% to $16.220B.

• Fuel expense rose 67.5% to $4.635B, an increase of $1.9B YoY; average fuel price including taxes was $3.85 per gallon.

• Nine-month revenue increased 15.6% to $46.982B; operating income fell to $521M from $1.015B, and net loss was $580M versus net income of $12M.

Outlook and guidance

• Q4 revenue growth is forecast at 19.5%-22.5% YoY, available seat miles up 5.5%-6.5%, and CASM-ex up 2.5%-3.5%.

• Adjusted diluted loss per share guidance is $0.50-$1.10 for Q4 and $1.00-$1.60 for FY 2026.

• Based on the Oct. 19 forward fuel curve, Q4 fuel is expected to average $4.70 per gallon, adding an estimated $2.8B to fuel expense YoY; FY 2026 fuel expense is expected to be more than $7B above 2025.

• 2027 network growth is expected to decelerate considerably; capacity plans will be matched to demand and profitability.

• Cost-reengineering efforts using digital solutions, process improvements and procurement transformation will continue; programs target nearly $1B in annual run-rate savings and more than $900M in working-capital improvements by year-end 2026.