American Airlines Q3 adjusted loss per share less than expected; sees Q4 fuel prices nearly double yr/yr

Overview

• U.S. airline's Q3 revenue up 19.3% yr/yr, slightly beating analyst expectations

• Adjusted loss per share for Q3 was better than analyst estimates

• Results pressured by $1.9 bln yr/yr increase in fuel expense

Outlook

• American Airlines sees 4Q revenue up 19.5%–22.5% year over year

• Company forecasts 4Q adj loss per share of $1.10–$0.50 and FY 2026 adj loss of $1.60–$1.00

• American Airlines anticipates an ​average fuel price ​of ​approximately $4.70 ​per gallon in Q4, nearly double the price paid in ​the fourth ​quarter of ​2025

Result Drivers

• PREMIUM DEMAND - Co said premium revenue growth outpaced Main Cabin, driven by investments in premium products and customer experience

• TRAVEL DEMAND - Co attributed strong unit revenue growth to continued strength in demand across geographies

• LOYALTY AND BUSINESS TRAVEL - Co said increased AAdvantage enrollments and strong managed corporate revenue supported results

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 13 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the airlines peer group is "buy"

• Wall Street's median 12-month price target for American Airlines Group Inc. is $15.00, about 22.6% above its October 21 closing price of $12.24

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• Oct 20 - Alaska Air forecasts bigger-than-expected fourth-quarter loss on soaring fuel costs

• Oct 20 - United Airlines Q3 revenue meets on record passenger traffic

• Oct 21 - Southwest Airlines cuts profit forecast as fuel costs overshadow turnaround gains

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)