AAL · American Airlines Group Inc.

American Airlines Group Inc. reported second-quarter 2026 results that reflected a sharp contrast between record revenue and eroding profitability due to soaring fuel costs. Total revenue reached $16.7 billion, up 16.3% year-over-year, the highest in company history. The gains were broad-based, with passenger revenue increasing 15.9% to $15.2 billion, driven by strong demand across domestic and international markets. Premium cabin revenue per ASM grew 13.4%, Main Cabin 8.8%, and managed corporate revenue rose 26% year-over-year. However, operating expenses increased 22.9% to $16.3 billion, primarily due to aircraft fuel expense more than doubling to $4.9 billion from $2.7 billion a year ago, representing an 83.3% increase. Fuel consumption rose only 3.5%, indicating the cost surge was entirely price-driven. As a result, GAAP operating income fell 60.7% to $446 million, and net income dropped 88.2% to $71 million ($0.11 per diluted share). Adjusted net income, excluding net special items of $28 million after tax, was $99 million ($0.15 per diluted share). Management highlighted the strength of their commercial strategy in offsetting nearly 50% of the fuel headwind through higher fares. For the third quarter, the company expects revenue growth of 16% to 19%, but given the forward fuel curve, expects an adjusted loss per share of ($0.70) to ($0.10). For the full year, the adjusted EPS range was set at ($0.65) to $0.65, reflecting a ~$6 billion year-over-year fuel headwind. The company continues to invest in its network, premium product, and loyalty program, with the AAdvantage program seeing enrollments grow over 30% and co-branded card spend up 8% year-over-year.