American Airlines had its best third quarter ever for revenue and still lost money. Fuel wiped out the gains. American's third-quarter results, released Oct. 22, show a GAAP net loss of $269 million on record revenue of $16.3 billion. The airline also warned that fuel will cost even more this quarter, and that it will grow more slowly in 2027.
The numbers
Revenue rose 19.3% from a year earlier. American says that was above the top of its own forecast. Fuel expense rose $1.9 billion, or 67.5%. The airline paid an average of $3.85 a gallon.
| Measure | Q3 2026 |
|---|---|
| Revenue | $16.3 billion, up 19.3% |
| Fuel expense | Up $1.9 billion, or 67.5% |
| GAAP net result | Loss of $269 million |
| Adjusted net result | Loss of $182 million |
American says its adjusted loss was only $71 million worse than a year earlier, despite the much larger fuel bill.
In our earnings scorecard, analysts expected American to lose $225 million, the biggest loss of the eight US airlines we tracked. American came in better than that on its adjusted measure and worse on a GAAP basis. The research behind the estimate does not say which measure it used.
Fuel gets worse before it gets better
The fourth quarter looks harder. Based on fuel futures as of Oct. 19, American expects to pay about $4.70 a gallon. That is nearly double what it paid in the fourth quarter of 2025, and it adds about $2.8 billion to the fuel bill.
American still expects revenue to rise 19.5% to 22.5% in the quarter, with capacity up 5.5% to 6.5%. But it forecasts an adjusted loss of 50 cents to $1.10 a share for the quarter, and an adjusted loss of $1 to $1.60 a share for the full year.
The line travelers should watch is short: "Given elevated fuel prices, American expects network growth in 2027 to slow from 2026 levels." The airline did not say which routes or how much. Slower growth usually means fewer new routes and fewer extra seats, which tends to keep fares firm.
Premium seats are carrying the airline
The money is in the front of the plane. American says premium revenue rose 22.9% and main cabin revenue rose 19.5%. Premium products bring in about half of ticket revenue from about 30% of seats. A planned retrofit should lift the premium share of seats on narrowbody jets to 40% in the coming years.
American also says:
- AAdvantage enrollments rose 27.4%.
- Spending on its Citi co-branded cards grew nearly 10%.
- Managed corporate revenue rose 27.6%, the sixth straight quarter of double-digit growth.
- The share of Basic Economy buyers who upgraded to Main Cabin rose 6 points.
What it means for lounges and Wi-Fi
The fuel loss has not changed American's stated plans for its product. The release says more Admirals Club and premium lounges are opening or being renovated than at any time in the company's history. It repeats the plan to put Starlink Wi-Fi on every mainline jet, more than 1,000 aircraft. Seatback screens are coming to narrowbody jets, starting with new deliveries in 2028.
American ended the quarter with $11.8 billion in available liquidity, so it has room to keep spending while it waits for fuel to ease.
Southwest, the day before
Southwest reported on Oct. 21 and stayed in the black. Its third-quarter release shows net income of $270 million, or $328 million adjusted, on record revenue of $8.4 billion, up 21.2%. That beat the $289 million estimate in our scorecard on an adjusted basis but fell short of it on a GAAP basis. Southwest's fuel costs rose $821 million.
Southwest now expects full-year adjusted earnings of $2.60 to $2.85 a share. It says its first Icon Lounges should welcome guests in 2027, and Starlink should be on every plane by fall 2027.
What it means for travelers
Both airlines are selling more expensive tickets to more willing buyers, and both are still spending on lounges and Wi-Fi. The pressure point is growth. American has now said plainly that 2027 will grow more slowly. When a big airline adds fewer seats than planned, cheap fares tend to get harder to find. If you have a 2027 trip in mind on American, it may pay to watch fares early rather than wait for a sale.
