July 23, 2026

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American Airlines Group Inc. (NASDAQ: AAL) reported second-quarter 2026 results above expectations, supported by record quarterly revenue, strong demand across premium and main cabin travel, higher international revenue, and continued corporate travel growth.
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American Airlines is a global airline that operates flights across domestic and international markets, with a network serving more than 350 destinations in more than 60 countries.
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The company reported adjusted EPS of $0.15, above estimates of $0.03, representing a 400.0% earnings surprise. Revenue came in at $16.73 billion, above estimates of $16.70 billion, with revenue growth of 16.3%.

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Results Beat Expectations

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American reported record quarterly revenue of $16.7 billion, up 16.3% year-over-year.
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GAAP net income was $71 million, or $0.11 per diluted share.
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Adjusted net income was $99 million, or $0.15 per diluted share.
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The company said revenue growth was driven by strong performance across its four commercial priorities: customer experience, global network growth, premium revenue, and loyalty.

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Fuel Costs Pressured Profitability

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The revenue beat came despite a sharp increase in fuel costs.
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Fuel expense rose by more than $2.2 billion, or 83%, year-over-year.
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American said higher fares helped offset nearly 50% of the fuel headwind during the quarter.
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Based on the forward fuel curve as of July 21, the company expects third-quarter fuel expense to be up $1.7 billion year-over-year.

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Premium and Corporate Demand Improved

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Premium passenger unit revenue increased 13.4%.
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Main Cabin passenger unit revenue increased 8.8%.
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Domestic passenger unit revenue increased 10.6%.
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International demand was also strong, with passenger unit revenue up 8.9% across Atlantic routes, 15.1% across Pacific routes, and 6.6% across Latin America.
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Managed corporate revenue increased 26% year-over-year, marking the fifth consecutive quarter of double-digit growth.

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Network and Loyalty Growth Continued

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American expanded international routes during the quarter, including new nonstop service to Budapest and Prague from Philadelphia, plus Athens service from Dallas-Fort Worth.
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The company also returned to Venezuela service from Miami to Caracas.
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AAdvantage enrollments increased more than 30% year-over-year.
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Second-quarter co-branded credit card spending with Citi increased 8%.
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American also said it improved system misconnections by nearly 25% year-over-year after rebanking Dallas-Fort Worth.

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Guidance Reflects Fuel Pressure

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For the third quarter, American expects revenue growth of 16.0% to 19.0% year-over-year.
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Available seat miles are expected to increase 3.0% to 5.0%.
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CASM excluding net special items, fuel, and profit sharing is expected to increase 2.5% to 4.5%.
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The company expects third-quarter adjusted EPS to range from a loss of $0.70 to a loss of $0.10.
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For full-year 2026, American now expects adjusted EPS to range from a loss of $0.65 to earnings of $0.65.

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The Bigger Picture

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American delivered strong revenue growth, but fuel costs kept the quarter from being cleaner.
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Revenue reached a company record, adjusted EPS beat expectations, corporate travel improved, and premium demand remained strong. The company also continued to grow its loyalty program and international network.
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The concern is that fuel expense rose sharply and management now expects full-year adjusted EPS to land anywhere from a loss to modest profit.
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