---
title: American Airlines Profit Collapses 88% While Rivals Absorb the Same Fuel Spike
description: American Airlines profit fell 88% this quarter, far worse than Delta and United, despite record revenue and higher fares.
author: Darie Nani (Editor-in-Chief)
updated: 2026-07-25T09:20:05.537Z
canonical: https://www.sovereignmagazine.com/article/american-airlines-q2-2026-profit-fuel-costs
categories: Markets
content_type: News
region: United States
publication: Sovereign Magazine
schema_type: Article
---

American Airlines posted the highest quarterly revenue in its history in the second quarter, $16.7 billion, up 16.3% from a year earlier. Net income fell to $71 million from $599 million over the same period, a drop of 88%. Diluted earnings per share fell to $0.11 from $0.91.

The headline number obscures a more specific problem. Every major US carrier faced the same jump in jet fuel prices this quarter, yet American's profit fell far more than its two largest competitors. Delta's net income fell by about 25% in the quarter. United's fell by roughly 17%. American's decline was more than three times steeper than Delta's, and more than five times steeper than United's, in a fuel environment all three airlines shared.

Fuel is the shared headwind behind all three results, but not the whole explanation for the gap between them. American's own numbers show the strain: fuel expense rose 83% year over year, from $2.66 billion to $4.88 billion, as the average price per gallon climbed to $4.05 from $2.29. The company said higher fares offset just under half of that increase. Delta and United paid similarly higher fuel prices, close to $3.93 and $4.19 per gallon respectively, and still posted smaller profit declines.

## Why Did American Airlines Profit Fall Despite Record Revenue

Record revenue and a shrinking bottom line can coexist when costs rise faster than sales. American's operating expenses climbed 22.9% in the quarter, outpacing its 16.3% revenue growth, and operating income fell 60.7% to $446 million from $1.14 billion. Fuel accounted for most of that cost increase, but American's revenue gains, strong as they were across premium seating, Main Cabin, domestic and international routes, were not enough to keep pace. The company said it recovered nearly half the fuel increase through pricing. The other half went straight to the bottom line.

## Is American Airlines Falling Behind Delta and United

The comparison across the three carriers this quarter is stark. American's net income fell from $599 million to $71 million. Delta's fell from roughly $2.13 billion to about $1.60 billion, a decline of around 25%. United's fell from $973 million to $805 million, a decline of about 17%. All three faced fuel costs that rose at similar rates, yet American absorbed the impact far less effectively than either rival. Separate results from Delta and United showed both carriers maintaining stronger margins even as their own fuel bills grew by comparable amounts.

The guidance each airline has issued in the weeks since points to the same divergence. United raised its full-year adjusted earnings outlook to $9 to $11 per share. Delta held its full-year guidance steady at $6.50 to $7.50 per share throughout the year. American has gone the opposite direction twice, cutting its outlook from an original $1.70 to $2.70 per share, then to a range of negative $0.40 to $1.10, and now to negative $0.65 to $0.65.

> "Revenue growth was strong across all entities and cabins, with premium, Main Cabin, domestic and international all up meaningfully year over year."
> — Robert Isom, CEO, American Airlines

## What Is American Airlines' Full Year 2026 Earnings Guidance

American now expects full-year adjusted earnings per diluted share of between a loss of $0.65 and a gain of $0.65, a range that includes the possibility of an annual loss. The company cited the recent rise in fuel costs as the reason for the cut. For the third quarter, American expects revenue growth of 16% to 19% year over year, against an anticipated average fuel price near $3.75 per gallon, lower than the second quarter's $4.05. Chief financial officer Devon May pointed to cost discipline as a partial offset, saying CASM-ex, a measure of unit costs excluding fuel, rose about 3% year over year even as the airline expanded capacity by 5.4%.

For the first half of 2026 as a whole, American reported a net loss of $311 million, compared with net income of $126 million over the same period last year. Delta and United have not reported comparable first-half losses.

## FAQ

**Q: Why did American Airlines profit fall despite record revenue?**
Operating costs rose faster than revenue. Fuel expense alone increased by more than $2.2 billion in the quarter, and American said fare increases covered just under half of that rise, leaving the remainder to cut directly into profit.

**Q: Is American Airlines struggling financially compared to Delta and United?**
On this quarter's numbers, yes. American's net income fell 88% year over year, compared with declines of about 25% at Delta and 17% at United, despite all three airlines facing similarly higher fuel prices.

**Q: What is American Airlines' full year 2026 earnings guidance?**
American now projects full-year adjusted earnings per diluted share between a loss of $0.65 and a gain of $0.65, down from an original forecast of $1.70 to $2.70 per share issued earlier in the year.