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FORT WORTH, Texas, Oct. 22, 2026 (GLOBE NEWSWIRE) -- American Airlines Group Inc. (NASDAQ: AAL) today reported its third-quarter 2026 financial results, reflecting execution of its commercial strategy and the benefits of long-term investments in its customers, team members, network, fleet and technology.

Third-quarter financial highlights:

Total revenue of $16.3 billion, up 19.3% year over year, above the high end of the previously announced guidance range.Delivered the best unit cost performance among the network carriers, with CASM-ex1 up 3.0%.Fuel expense for the quarter increased $1.9 billion, or 67.5%, year over year.GAAP net loss of $269 million, or ($0.41) per diluted share.Adjusted net loss of $182 million2, or ($0.28) per diluted share. Adjusted net loss was only $71 million below third quarter 2025 despite the $1.9 billion increase in fuel expense. “American delivered record third-quarter revenue and the strongest year-over-year revenue growth in my career, with premium performance leading the way,” said American's CEO Robert Isom. "The investments we are making across the four pillars of our commercial strategy are working, and we expect another quarter of record revenue growth to close out the year. While historically high fuel prices significantly impacted our financial results, our focus remains on restoring profitability and building a stronger American for the long term. I’m grateful to the American Airlines team for making this progress possible.”

The company’s third-quarter results were driven by strong revenue performance across all geographies and cabins:

Premium revenue increased 22.9%, and Main Cabin revenue increased 19.5% year over year.Total unit revenue increased 14.5% year over year, reflecting continued strength in demand for travel.Domestic passenger unit revenue increased 13.6% year over year in the third quarter.International passenger unit revenue increased 16.4%, with the Latin America entity up 21.1%, the Atlantic entity up 14.5% and the Pacific entity up 11.3% compared to the third quarter of 2025.AAdvantage® enrollments increased 27.4% year over year.Demand for business travel remained strong, with managed corporate revenue increasing 27.6% year over year, marking the sixth consecutive quarter of double-digit growth. This revenue performance was a result of the company’s continued focus on its four commercial pillars: elevate the customer experience, grow the global network, drive premium revenue and lead in loyalty.

1) Elevate the customer experience

American’s investments in high-speed connectivity, lounges, seatback entertainment, airport facilities and fleet modernization are creating the foundation for a best-in-class customer experience.

In May, American announced plans to equip more than 500 aircraft with high-speed Starlink Wi-Fi, representing the largest in-flight connectivity upgrade in the airline’s history. Building on that commitment, the company announced on Oct. 8 that it plans to expand Starlink installation across its entire mainline fleet, bringing the technology to more than 1,000 aircraft. Once installation is complete, American will offer one of the largest fleets of Starlink-connected aircraft in the world.

The company also continues to grow its Admirals Club® and premium lounge network with more lounges opening or being renovated than at any point in company history. Additionally, American announced the expansion of seatback entertainment to the narrowbody fleet, including screens on new deliveries beginning in 2028. With these foundational investments underway, American remains focused on further improving customer satisfaction through enhanced operational reliability, better disruption management and a more consistent travel experience.

2) Grow the global network

American continues to strengthen its global network, offering customers more destinations, better connectivity and greater schedule utility. At Dallas Fort Worth International Airport (DFW), this year's rebank produced record passenger volumes, fewer misconnections and mishandled bags, and unit revenue that outpaced the rest of the system. In Chicago, Miami, Philadelphia and Phoenix, American is building stronger schedules for local customers.

3) Drive premium revenue

American continues to see momentum in premium demand, demonstrating the benefits of recent investments across its premium products and customer experience. Premium passenger unit revenue increased 18.5% year over year during the third quarter, compared with an increase of 14.4% in Main Cabin.

American plans to continue expanding premium seating through the delivery of new aircraft and the retrofit of existing aircraft. Premium products generate roughly half of the company's ticket revenue on approximately 30% of seats today. Through the recently announced narrowbody retrofit program, American expects premium seats on narrowbody aircraft to increase to 40% in the coming years.

The company also continues to take actions to improve revenue quality and provide customers with a broader range of choices. These initiatives contributed to a 6-point increase in the upsell rate from Basic Economy to Main Cabin during the quarter.

4) Lead in loyalty

The AAdvantage® program remains one of American's strongest competitive advantages, driving customer engagement, premium demand and long-term value creation. The program continues to benefit from strong member activity, increased engagement and enhancements to American’s co-branded credit card program.

Enrollments in the AAdvantage® program increased 27.4% year over year in the third quarter. American’s co-branded credit card partnership with Citi saw year-over-year third-quarter card spend growth of nearly 10%.

Efficiency and cost performance

American continues to benefit from long-term investments in technology, procurement and other initiatives designed to build a more efficient and resilient airline. The company is reengineering how work gets done across the business, improving productivity and simplifying processes while continuing to invest in the customer and team member experience.

By the end of 2026, the company expects to have achieved nearly $1 billion in annual run rate savings and more than $900 million in working capital improvements through its multiyear reengineering efforts. American continues to identify opportunities to use technology, automation and artificial intelligence to simplify the business and equip team members with better tools to improve decision-making.

“We remain focused ​on the ​factors ​that drive the most value,” said American’s ​Chief Financial Officer Devon ​May. “Our long-term ​focus ​on ​efficiency supported ​industry-leading unit ​cost results in the quarter, with CASM-ex ​increasing 3.0% ​year over ​year. For the full year, we expect to lead the network carriers in the spread between year-over-year unit revenue and CASM-ex growth.”

Overall financial results were pressured by a significant increase in fuel costs. American paid an average of $3.85 per gallon in the third quarter, which increased fuel expense by $1.9 billion year over year.

Balance sheet and liquidity

American ended the third quarter with $11.8 billion of total available liquidity and more than $26 billion of unencumbered assets and first-lien capacity. The company remains committed to reducing debt, lowering interest expense and achieving its target of 3.0x net debt3 to EBITDAR, in line with BB credit metrics.

Outlook and financial guidance

In​ the fourth ​quarter, ​the ​company ​expects continued ​revenue ​strength, with ​year-over-year ​revenue ​growth ​between ​19.5% and 22.5%. ​Based ​on the forward fuel curve ​as ​of Oct. 19, American anticipates an ​average fuel price ​of ​approximately $4.70 ​per gallon, nearly double the price paid in ​the fourth ​quarter of ​2025. At ​that price, ​fuel ​expense is ​expected to increase approximately $2.8 billion ​versus ​the fourth ​quarter of ​2025.

Given elevated fuel prices, American expects network growth in 2027 to slow from 2026 levels.

4Q 2026E (vs. 4Q 2025)Available seat miles+5.5% – +6.5%Total revenue+19.5% – +22.5%CASM excluding net special items, fuel and profit sharing1+2.5% – +3.5%Adjusted loss per diluted share4($1.10) – ($0.50)  FY 2026E Adjusted loss per diluted share4($1.60) – ($1.00)   Conference call and webcast

American will host a conference call at 7:30 a.m. CT today. A live webcast and replay will be available at American’s investor relations website.

Notes

See the accompanying notes in the financial tables section of this news release for further explanation, including reconciliations of certain GAAP to non-GAAP financial information.

Cost per available seat mile excluding net special items, fuel and profit sharing, or CASM-ex, is a non-GAAP measure. The company is unable to reconcile certain forward-looking information to GAAP because the nature or amount of net special items cannot be determined at this time.Adjusted net loss is a non-GAAP financial measure and excludes $87 million of net special items after the effect of taxes that the company recognized in the third quarter.Net debt includes debt, finance and operating lease liabilities and pension obligations less unrestricted cash and short-term investments.Adjusted loss per diluted share guidance excludes the impact of net special items and represents an absolute number, not a year-over-year comparison. The company is unable to reconcile certain forward-looking information to GAAP as the nature or amount of net special items cannot be determined at this time.Other: Third-quarter revenue growth of 19.3% is the highest in company history excluding the years following the pandemic.

About American Airlines Group (NASDAQ: AAL)

American Airlines is a premium global airline connecting more of the U.S. to the world. With roots tracing back to an air mail carrier in the Midwestern United States in 1926, American now operates more than 6,000 daily flights to more than 350 destinations in more than 60 countries and serves more than 200 million customers annually. Powered by a proud and talented team of 140,000 aviation professionals, American’s team lives out the airline’s purpose of caring for people on life’s journey every day.

The world’s largest airline proudly celebrates its centennial year in 2026, reaching a milestone that reflects a century of innovation and the Forever ForwardSM spirit that changed the industry and the world. American introduced the first scheduled air cargo service, the first airport lounge and the first airline loyalty program and continues to reinvent the customer experience today. The airline is also a founding member of the oneworld alliance, whose members serve more than 900 destinations around the globe.

Get the latest about American at news.aa.com and @AmericanAir.

Use of websites and social media to disclose information

American routinely uses the investor relations section of its website as well as its social media pages, including on Facebook and X, and its newsroom at news.aa.com, to disclose important information about American Airlines Group Inc. and its subsidiaries and to comply with its disclosure obligations under Regulation Fair Disclosure. The information contained on, or that may be accessed through, the company’s website, social media channels or newsroom is not incorporated by reference into, and is not a part of, this document, and all website addresses in this document are intended to be inactive textual references only.

Cautionary statement regarding forward-looking statements and information

Certain of the statements contained in this document should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate,” “plan,” “project,” “could,” “should,” “would,” “continue,” “seek,” “target,” “guidance,” “outlook,” “if current trends continue,” “optimistic,” “forecast” and other similar words. Such statements include, but are not limited to, statements about the company’s plans, objectives, expectations, intentions, estimates and strategies for the future, and other statements that are not historical facts. These forward-looking statements are based on the company’s current objectives, beliefs and expectations, and they are subject to significant risks and uncertainties that may cause actual results and financial position and timing of certain events to differ materially from the information in the forward-looking statements. These risks and uncertainties include, but are not limited to, downturns in economic conditions could adversely affect our business; we will need to obtain sufficient financing or other capital to operate successfully; our high level of debt and other obligations may limit our ability to fund general corporate requirements and obtain additional financing, may limit our flexibility in responding to competitive developments and may cause our business to be vulnerable to adverse economic and industry conditions; if our financial condition worsens, provisions in our credit card processing and other commercial agreements may adversely affect our liquidity; the loss of key personnel whom we depend on to operate our business, or the inability to attract, develop and retain additional qualified personnel could adversely affect our business; our business has been and will continue to be materially affected by many changing economic, geopolitical, commercial, regulatory and other conditions beyond our control, including global events that affect travel behavior; the airline industry is intensely competitive and dynamic; union disputes, employee strikes and other labor-related disruptions may adversely affect our operations and financial performance; if we encounter problems with any of our third-party regional operators or third-party service providers, our operations could be adversely affected by a resulting decline in revenue or negative public perception about our services; any damage to our reputation or brand image could adversely affect our business or financial results; risks of losses and adverse publicity from any public incidents involving our company, people or brand; changes to our business model that are designed to increase revenues and reduce costs may not be successful and may cause operational difficulties or decreased demand; our intellectual property rights, particularly our branding rights, are valuable, and any inability to protect them may adversely affect our business and financial results; we may be a party to litigation in the normal course of business or otherwise, which could affect our financial position and liquidity; we rely heavily on technology and automated systems, including artificial intelligence, to operate our business, and any failures could harm our business, results of operations and financial condition; evolving data privacy requirements could increase our costs, and any significant cybersecurity incident could disrupt our operations, harm our reputation, expose us to legal risks and otherwise materially adversely affect our business, results of operations and financial condition; we are exposed to risks from cyberattacks, and any cybersecurity incidents involving us, our third-party service providers, or one of our AAdvantage partners or other business partners; we have a significant amount of goodwill, which is assessed for impairment at least annually. We may never realize the full value of our intangible or long-lived assets, causing us to record material impairment charges; the commercial relationships that we have with other companies, including any related equity investments, may not produce the returns or results we expect; our business is very dependent on the price and availability of aircraft fuel. Continued periods of high volatility in fuel costs, increased fuel prices or significant disruptions in the supply of aircraft fuel could have a significant negative impact on consumer demand, our operating results and liquidity; our business is subject to extensive government regulation; we can be adversely affected by any prolonged partial or full U.S. Government shutdown; we operate a global business with international operations that are subject to economic and political instability and have been, and in the future may continue to be, adversely affected by numerous events, circumstances or government actions beyond our control; we may be adversely affected by conflicts overseas, terrorist attacks or other acts of violence, domestically or abroad; the travel industry continues to face ongoing security concerns; we are subject to risks associated with climate change, including increased regulation of our greenhouse gas emissions, changing consumer preferences and the potential for increased impacts of severe weather events on our operations and infrastructure; we are subject to various risks associated with environmental and social matters, and many forms of environmental and noise regulation; a shortage of pilots or other personnel could materially adversely affect our business; we depend on a limited number of suppliers for aircraft, aircraft engines and parts. Delays in scheduled aircraft deliveries, unexpected grounding of aircraft or aircraft engines whether by regulators or by us, or other loss of anticipated fleet capacity, and failure of new aircraft to receive regulatory approval, be produced or otherwise perform as and when expected, adversely impacts our business, results of operations and financial condition; we rely on third-party distribution channels and must effectively manage the costs, rights and functionality of these channels; if we are unable to obtain and maintain adequate facilities and infrastructure throughout our system and, at some airports, adequate slots, we may be unable to operate our existing flight schedule and to expand or change our route network in the future; interruptions or disruptions in service at one of our key facilities; increases in insurance costs or reductions in insurance coverage, and heavy taxation of the airline industry; risks related to ownership of AAG common stock; and other risks set forth herein as well as in the company’s latest annual report on Form 10-K for the year ended December 31, 2025 (especially in Part I, Item 1A. Risk Factors and Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations) and subsequent quarterly reports on Form 10-Q (especially in Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Part II, Item 1A. Risk Factors), and other risks and uncertainties listed from time to time in the company’s other filings with the Securities and Exchange Commission. Additionally, there may be other factors of which the company is not currently aware that may affect matters discussed in the forward-looking statements and may also cause actual results to differ materially from those discussed. The company does not assume any obligation to publicly update or supplement any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting these forward-looking statements other than as required by law. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statement.

Financial tables

American Airlines Group Inc. Condensed Consolidated Statements of Operations (In millions, except share and per share amounts) (Unaudited)                 3 Months Ended
September 30, Percent
Increase 9 Months Ended
September 30, Percent
Increase    2026   2025  (Decrease)  2026   2025  (Decrease)               Operating revenues:             Passenger $14,900  $12,471  19.5  $42,609  $36,985  15.2  Cargo  274   212  29.1   761   612  24.3  Other  1,161   1,008  15.2   3,612   3,037  18.9  Total operating revenues  16,335   13,691  19.3   46,982   40,634  15.6                Operating expenses:             Aircraft fuel and related taxes  4,635   2,767  67.5   12,444   8,017  55.2  Salaries, wages and benefits  4,713   4,461  5.7   14,027   13,065  7.4  Regional expenses:             Regional operating expenses  1,356   1,286  5.5   4,012   3,809  5.3  Regional depreciation and amortization  93   84  10.5   276   244  13.0  Maintenance, materials and repairs  1,092   1,028  6.2   3,100   2,876  7.8  Other rent and landing fees  996   906  9.9   2,862   2,627  9.0  Aircraft rent  309   310  (0.5)  926   910  1.7  Selling expenses  553   483  14.7   1,664   1,467  13.4  Depreciation and amortization  493   474  3.9   1,446   1,418  2.0  Special items, net  9   7  22.5   29   125  (76.6) Other  1,971   1,734  13.7   5,675   5,061  12.1  Total operating expenses  16,220   13,540  19.8   46,461   39,619  17.3                Operating income  115   151  (23.4)  521   1,015  (48.7)               Nonoperating income (expense):             Interest income  87   90  (3.8)  217   285  (24.0) Interest expense, net  (435)  (432) 0.7   (1,242)  (1,294) (4.0) Other income (expense), net  (101)  49  nm(1)  (198)  42  nm  Total nonoperating expense, net  (449)  (293) 53.8   (1,223)  (967) 26.5                Income (loss) before income taxes  (334)  (142) nm   (702)  48  nm                  Income tax provision (benefit)  (65)  (28) nm   (122)  36  nm                  Net income (loss) $(269) $(114) nm  $(580) $12  nm                              Earnings (loss) per common share:             Basic $(0.41) $(0.17)   $(0.88) $0.02    Diluted $(0.41) $(0.17)   $(0.88) $0.02                  Weighted average shares outstanding (in thousands):             Basic  662,706   660,358     662,026   659,788    Diluted  662,706   660,358     662,026   660,784                                              Note: Percent change may not recalculate due to rounding.
              (1) Not meaningful or greater than 100% change.
                American Airlines Group Inc.Consolidated Operating Statistics (1)(Unaudited)                 3 Months Ended
September 30, Increase  9 Months Ended
September 30, Increase   2026 2025 (Decrease)  2026 2025 (Decrease)                Revenue passenger miles (millions) 67,265 66,580 1.0 % 193,934 188,698 2.8 %Available seat miles (ASM) (millions) 80,680 77,400 4.2 % 234,533 224,939 4.3 %Passenger load factor (percent) 83.4 86.0 (2.6)pts 82.7 83.9 (1.2)ptsYield (cents) 22.15 18.73 18.3 % 21.97 19.60 12.1 %Passenger revenue per ASM (cents) 18.47 16.11 14.6 % 18.17 16.44 10.5 %Total revenue per ASM (cents) 20.25 17.69 14.5 % 20.03 18.06 10.9 %Cargo ton miles (millions) 625 545 14.7 % 1,790 1,550 15.5 %Cargo yield per ton mile (cents) 43.86 38.94 12.6 % 42.52 39.52 7.6 %               Fuel consumption (gallons in millions) 1,204 1,169 3.0 % 3,473 3,375 2.9 %Average aircraft fuel price including related taxes (dollars per gallon) 3.85 2.37 62.7 % 3.58 2.38 50.8 %               Operating cost per ASM (cents) 20.10 17.49 14.9 % 19.81 17.61 12.5 %Operating cost per ASM excluding net special items (cents) 20.08 17.48 14.9 % 19.79 17.56 12.7 %Operating cost per ASM excluding net special items and fuel (cents) 14.34 13.91 3.1 % 14.49 13.99 3.5 %Operating cost per ASM excluding net special items, fuel and profit sharing (cents)14.34 13.92 3.0 % 14.49 13.98 3.6 %               Passenger enplanements (thousands) 58,143 58,474 (0.6)% 169,014 168,220 0.5 %Departures (thousands):              Mainline 304 298 2.3 % 896 881 1.7 %Regional 281 267 5.3 % 820 787 4.2 %Total 585 565 3.7 % 1,716 1,668 2.9 %Average stage length (miles):              Mainline 1,220 1,201 1.6 % 1,212 1,188 2.0 %Regional 471 464 1.4 % 473 465 1.9 %Total 861 853 0.9 % 859 846 1.5 %Aircraft at end of period:              Mainline 1,037 998 3.9 % 1,037 998 3.9 %Regional (2) 587 557 5.4 % 587 557 5.4 %Total 1,624 1,555 4.4 % 1,624 1,555 4.4 %Full-time equivalent employees at end of period:              Mainline 107,700 104,900 2.7 % 107,700 104,900 2.7 %Regional (3) 33,400 32,000 4.4 % 33,400 32,000 4.4 %Total 141,100 136,900 3.1 % 141,100 136,900 3.1 %                              Note: Amounts may not recalculate due to rounding.                             (1) Unless otherwise noted, operating statistics include mainline and regional operations. Regional includes wholly-owned regional airline subsidiaries and operating results from capacity purchase carriers.(2) Includes aircraft owned and leased by American as well as aircraft operated by third-party regional carriers under capacity purchase agreements. Excluded from the aircraft count above are two Bombardier CRJ900 regional aircraft that are held in temporary storage as of September 30, 2026.(3) Regional full-time equivalent employees only include our wholly-owned regional airline subsidiaries.                American Airlines Group Inc.Consolidated Revenue Statistics by Region(Unaudited)                 3 Months Ended
September 30, Increase  9 Months Ended
September 30, Increase   2026 2025 (Decrease)  2026 2025 (Decrease)                Domestic (1)              Revenue passenger miles (millions) 44,579 43,741 1.9 % 129,068 125,206 3.1 %Available seat miles (ASM) (millions) 54,096 51,106 5.9 % 157,579 149,762 5.2 %Passenger load factor (percent) 82.4 85.6 (3.2)pts 81.9 83.6 (1.7)ptsPassenger revenue (dollars in millions) 10,489 8,723 20.2 % 30,205 26,010 16.1 %Yield (cents) 23.53 19.94 18.0 % 23.40 20.77 12.7 %Passenger revenue per ASM (cents) 19.39 17.07 13.6 % 19.17 17.37 10.4 %               Latin America (2)              Revenue passenger miles (millions) 7,706 7,726 (0.3)% 26,612 26,106 1.9 %Available seat miles (millions) 8,807 8,832 (0.3)% 31,379 30,560 2.7 %Passenger load factor (percent) 87.5 87.5 - pts 84.8 85.4 (0.6)ptsPassenger revenue (dollars in millions) 1,618 1,340 20.7 % 5,307 4,795 10.7 %Yield (cents) 20.99 17.34 21.1 % 19.94 18.37 8.6 %Passenger revenue per ASM (cents) 18.37 15.17 21.1 % 16.91 15.69 7.8 %               Atlantic              Revenue passenger miles (millions) 12,746 12,951 (1.6)% 30,802 30,317 1.6 %Available seat miles (millions) 15,023 14,878 1.0 % 36,708 36,255 1.2 %Passenger load factor (percent) 84.8 87.0 (2.2)pts 83.9 83.6 0.3 ptsPassenger revenue (dollars in millions) 2,438 2,109 15.6 % 5,893 5,160 14.2 %Yield (cents) 19.13 16.28 17.5 % 19.13 17.02 12.4 %Passenger revenue per ASM (cents) 16.23 14.17 14.5 % 16.05 14.23 12.8 %               Pacific              Revenue passenger miles (millions) 2,234 2,162 3.3 % 7,452 7,069 5.4 %Available seat miles (millions) 2,754 2,584 6.6 % 8,867 8,362 6.0 %Passenger load factor (percent) 81.1 83.7 (2.6)pts 84.0 84.5 (0.5)ptsPassenger revenue (dollars in millions) 355 299 18.5 % 1,204 1,020 18.0 %Yield (cents) 15.88 13.84 14.8 % 16.15 14.43 11.9 %Passenger revenue per ASM (cents) 12.88 11.58 11.3 % 13.57 12.20 11.3 %               Total International              Revenue passenger miles (millions) 22,686 22,839 (0.7)% 64,866 63,492 2.2 %Available seat miles (millions) 26,584 26,294 1.1 % 76,954 75,177 2.4 %Passenger load factor (percent) 85.3 86.9 (1.6)pts 84.3 84.5 (0.2)ptsPassenger revenue (dollars in millions) 4,411 3,748 17.7 % 12,404 10,975 13.0 %Yield (cents) 19.44 16.41 18.5 % 19.12 17.29 10.6 %Passenger revenue per ASM (cents) 16.59 14.25 16.4 % 16.12 14.60 10.4 %               Note: Amounts may not recalculate due to rounding.                             (1) Domestic results include Canada, Puerto Rico and U.S. Virgin Islands.(2) Latin America results include the Caribbean.                Reconciliation of GAAP Financial Information to Non-GAAP Financial Information                           American Airlines Group Inc. (the Company) sometimes uses financial measures that are derived from the condensed consolidated financial statements but that are not presented in accordance with GAAP to understand and evaluate its current operating performance and to allow for period-to-period comparisons. The Company believes these non-GAAP financial measures may also provide useful information to investors and others. These non-GAAP measures may not be comparable to similarly titled non-GAAP measures of other companies, and should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flow or liquidity prepared in accordance with GAAP. The Company is providing a reconciliation of reported non-GAAP financial measures to their comparable financial measures on a GAAP basis. The tables below present the reconciliations of the following GAAP measures to their non-GAAP measures:  - Operating Income (GAAP measure) to Operating Income Excluding Net Special Items (non-GAAP measure) 
- Operating Margin (GAAP measure) to Operating Margin Excluding Net Special Items (non-GAAP measure)
- Pre-Tax Income (Loss) (GAAP measure) to Pre-Tax Income (Loss) Excluding Net Special Items (non-GAAP measure)
- Pre-Tax Margin (GAAP measure) to Pre-Tax Margin Excluding Net Special Items (non-GAAP measure)
- Net Income (Loss) (GAAP measure) to Net Income (Loss) Excluding Net Special Items (non-GAAP measure)
- Basic and Diluted Earnings (Loss) Per Share (GAAP measure) to Basic and Diluted Earnings (Loss) Per Share Excluding Net Special Items (non-GAAP measure) Management uses these non-GAAP financial measures to evaluate the Company's current operating performance and to allow for period-to-period comparisons. As net special items may vary from period-to-period in nature and amount, the adjustment to exclude net special items provides management with an additional tool to understand the Company’s core operating performance. Additionally, the tables below present the reconciliations of total operating costs (GAAP measure) to total operating costs excluding net special items, fuel and profit sharing (non-GAAP measure) and total operating costs per ASM (CASM) to CASM excluding net special items, fuel and profit sharing. Management uses total operating costs excluding net special items, fuel and profit sharing and CASM excluding net special items, fuel and profit sharing to evaluate the Company's current operating performance and to allow for period-to-period comparisons. The price of fuel, over which the Company has no control, impacts the comparability of period-to-period financial performance. Additionally, the Company excludes profit sharing to allow investors to better understand and analyze its operating cost performance and to provide a more meaningful comparison of its core operating costs to the airline industry. The adjustment to exclude net special items, fuel and profit sharing provides management with an additional tool to understand and analyze the Company’s non-fuel costs and core operating performance.    Reconciliation of Operating Income Excluding Net Special Items 3 Months Ended
September 30, Percent
Increase 9 Months Ended
September 30,Percent
Increase    2026   2025  (Decrease)  2026   2025  (Decrease)    (in millions)   (in millions)                   Operating income as reported $115  $151    $521  $1,015     Operating net special items:              Mainline operating special items, net (1)  9   7     29   125     Regional operating special items, net  8   -     8   -     Operating income excluding net special items $132  $158  (16.2%) $558  $1,140  (51.0%)                 Calculation of Operating Margin                             Operating income as reported $115  $151    $521  $1,015                    Total operating revenues as reported $16,335  $13,691    $46,982  $40,634                    Operating margin  0.7%  1.1%    1.1%  2.5%                   Calculation of Operating Margin Excluding Net Special Items                             Operating income excluding net special items $132  $158    $558  $1,140                    Total operating revenues as reported $16,335  $13,691    $46,982  $40,634                    Operating margin excluding net special items  0.8%  1.2%    1.2%  2.8%                   Reconciliation of Pre-Tax Income (Loss) Excluding Net Special Items                             Pre-tax income (loss) as reported $(334) $(142)   $(702) $48     Pre-tax net special items:              Mainline operating special items, net (1)  9   7     29   125     Regional operating special items, net  8   -     8   -     Nonoperating special items, net (2)  95   (4)    259   28     Total pre-tax net special items  112   3     296   153                    Pre-tax income (loss) excluding net special items $(222) $(139) 60.1% $(406) $201  nm                 Calculation of Pre-Tax Margin                             Pre-tax income (loss) as reported $(334) $(142)   $(702) $48                    Total operating revenues as reported $16,335  $13,691    $46,982  $40,634                    Pre-tax margin  (2.0%)  (1.0%)    (1.5%)  0.1%                   Calculation of Pre-Tax Margin Excluding Net Special Items                             Pre-tax income (loss) excluding net special items $(222) $(139)   $(406) $201                    Total operating revenues as reported $16,335  $13,691    $46,982  $40,634                    Pre-tax margin excluding net special items  (1.4%)  (1.0%)    (0.9%)  0.5%                                    3 Months Ended
September 30, Percent
Increase 9 Months Ended
September 30,Percent
Increase  Reconciliation of Net Income (Loss) Excluding Net Special Items  2026   2025  (Decrease)  2026   2025  (Decrease)    (in millions, except share and per share amounts)   (in millions, except share and per share amounts)                   Net income (loss) as reported $(269) $(114)   $(580) $12     Net special items:              Total pre-tax net special items (1), (2)  112   3     296   153     Net tax effect of net special items  (25)  -     (66)  (34)    Net income (loss) excluding net special items $(182) $(111) 63.7% $(350) $131  nm                 Reconciliation of Basic and Diluted Earnings (Loss) Per Share Excluding Net Special Items                             Net income (loss) excluding net special items $(182) $(111)   $(350) $131                    Shares used for computation (in thousands):              Basic  662,706   660,358     662,026   659,788     Diluted  662,706   660,358     662,026   660,784                    Earnings (loss) per share excluding net special items:              Basic $(0.28) $(0.17)   $(0.53) $0.20     Diluted $(0.28) $(0.17)   $(0.53) $0.20                    Reconciliation of Total Operating Costs per ASM Excluding Net Special Items, Fuel and Profit Sharing                             Total operating expenses as reported $16,220  $13,540    $46,461  $39,619                    Operating net special items:              Mainline operating special items, net (1)  (9)  (7)    (29)  (125)    Regional operating special items, net  (8)  -     (8)  -     Total operating expenses excluding net special items  16,203   13,533     46,424   39,494                    Aircraft fuel and related taxes  (4,635)  (2,767)    (12,444)  (8,017)    Total operating expenses excluding net special items and fuel  11,568   10,766     33,980   31,477                    Profit sharing  -   8     -   (33)    Total operating expenses excluding net special items, fuel and profit sharing $11,568  $10,774    $33,980  $31,444                      (in cents)   (in cents)                  Total operating expenses per ASM as reported  20.10   17.49     19.81   17.61                    Operating net special items per ASM:              Mainline operating special items, net (1)  (0.01)  (0.01)    (0.01)  (0.06)    Regional operating special items, net  (0.01)  -     -   -     Total operating expenses per ASM excluding net special items  20.08   17.48     19.79   17.56                    Aircraft fuel and related taxes per ASM  (5.74)  (3.58)    (5.31)  (3.56)    Total operating expenses per ASM excluding net special items and fuel  14.34   13.91     14.49   13.99                    Profit sharing per ASM  -   0.01     -   (0.01)    Total operating expenses per ASM excluding net special items, fuel and profit sharing  14.34   13.92     14.49   13.98                    Note: Amounts may not recalculate due to rounding.
                           FOOTNOTES:                            (1)The 2025 nine month period mainline operating special items, net principally included a one-time charge resulting from adjustments to vacation accruals due to pay rate increases effective January 1, 2025, following the ratification of the contract extension in the fourth quarter of 2024 with the Company's mainline maintenance and fleet service team members and adjustments to litigation reserves.                (2)Principally included mark-to-market net unrealized gains and losses associated with certain equity investments as well as charges associated with debt refinancings and extinguishments. Additionally, the 2026 third quarter and nine month period included an impairment charge related to the Company's equity investment in Republic Airways Holdings Inc.                 American Airlines Group Inc. Condensed Consolidated Statements of Cash Flows (In millions) (Unaudited)             9 Months Ended
September 30,      2026   2025           Net cash provided by operating activities$4,541  $3,373   Cash flows from investing activities:     Capital expenditures and aircraft purchase deposits (2,728)  (2,149)  Proceeds from sale-leaseback transactions and sale of property and equipment 77   243   Purchases of short-term investments (5,026)  (4,801)  Sales of short-term investments 2,751   4,944   Decrease (increase) in restricted short-term investments 180   (20)  Other investing activities (79)  279   Net cash used in investing activities (4,825)  (1,504)  Cash flows from financing activities:     Proceeds from issuance of long-term debt 5,933   2,169   Payments on long-term debt and finance leases (5,347)  (4,087)  Other financing activities (130)  85   Net cash provided by (used in) financing activities 456   (1,833)  Net increase in cash and restricted cash 172   36   Cash and restricted cash at beginning of period 1,056   902   Cash and restricted cash at end of period (1)$1,228  $938                  ‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾‾
      (1)The following table provides a reconciliation of cash and restricted cash to amounts reported within the condensed consolidated balance sheets:          Cash $1,124  $835   Restricted cash included in restricted cash and short-term investments 104   103   Total cash and restricted cash$1,228  $938           American Airlines Group Inc. Condensed Consolidated Balance Sheets (In millions, except shares)         September 30, 2026 December 31, 2025  (unaudited)   Assets         Current assets    Cash$1,124  $954  Short-term investments 7,163   4,882  Restricted cash and short-term investments 555   735  Accounts receivable, net 1,928   2,075  Aircraft fuel, spare parts and supplies, net 3,171   2,792  Prepaid expenses and other 800   767  Total current assets 14,741   12,205       Operating property and equipment    Flight equipment 48,715   46,597  Ground property and equipment 10,808   10,479  Equipment purchase deposits 633   656  Total property and equipment, at cost 60,156   57,732  Less accumulated depreciation and amortization (26,530)  (25,192) Total property and equipment, net 33,626   32,540       Operating lease right-of-use assets 6,744   7,091       Other assets    Goodwill 4,091   4,091  Intangibles, net 2,067   2,066  Deferred tax asset 2,477   2,368  Other assets 1,272   1,413  Total other assets 9,907   9,938       Total assets$65,018  $61,774       Liabilities and Stockholders’ Equity (Deficit)         Current liabilities    Current maturities of long-term debt and finance leases$3,692  $3,753  Accounts payable 3,334   2,840  Accrued salaries and wages 2,175   2,128  Air traffic liability 9,414   7,158  Loyalty program liability 4,446   3,725  Operating lease liabilities 1,032   1,058  Fuel financing 933   914  Other accrued liabilities 2,997   2,916  Total current liabilities 28,023   24,492       Noncurrent liabilities    Long-term debt and finance leases, net of current maturities 25,943   25,254  Pension and postretirement benefits 1,099   1,568  Loyalty program liability 7,068   6,839  Operating lease liabilities 5,607   5,905  Other liabilities 1,502   1,443  Total noncurrent liabilities 41,219   41,009       Stockholders' equity (deficit)    Common stock, 662,618,434 shares outstanding at September 30, 2026 7   7  Additional paid-in capital 7,424   7,387  Accumulated other comprehensive loss (4,343)  (4,389) Retained deficit (7,312)  (6,732) Total stockholders' deficit (4,224)  (3,727)      Total liabilities and stockholders’ equity (deficit)$65,018  $61,774        Total Debt and Net Debt      The Company's total debt and net debt are presented below, which are non-GAAP measures that management believes are useful for assessing the Company's debt profile. Total debt is defined as debt, finance and operating lease liabilities and pension obligations, and net debt is defined as total debt, net of unrestricted cash and short-term investments.     Total Debt and Net Debt (at end of period) September 30, 2026  (in millions)     Debt and finance leases $29,635 Operating lease liabilities  6,639 Pension obligations  92 Total debt  36,366 Less: cash and short-term investments  8,287 Net debt $28,079      Corporate Communications
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Robert D. Isom Jr, CEO and President of American Airlines Group Inc. (AAL -3.26%), disposed of over 335,000 shares on Sept. 20, accordig to SEC Form 4 filing

Transaction summaryMetricValueTransaction value$4.3 millionShares sold335,199Post-transaction shares (directly held)3,459,080Post-transaction value$44.8 millionTransaction value and post-transaction value based on SEC Form 4 weighted average sale price ($12.96).

Company OverviewMetricValueShare Price (as of Sept. 21 market close)$13.57Market Capitalization$8.7 billionRevenue (TTM)$58.3 billionNet Loss (TTM)$326.0 millionCompany SnapshotAmerican Airlines Group operates one of the largest airline networks in North America

It operates as a major network air carrier providing scheduled air transportation services for passengers and freight across a comprehensive domestic and international route network.The company generates revenue through passenger ticket sales, cargo services, and ancillary offerings, leveraging a hub-and-spoke operating model centered on nine primary domestic hubs, including Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C.American Airlines serves both leisure and business travelers globally, with strategic international gateways in London, Madrid, Seattle/Tacoma, Sydney, and Tokyo.What this transaction means for investorsA significant share sale by a major insider, like a CEO, gets investors’ attention. However, this transaction shouldn’t raise any red flags.

That’s because he conducted his share sale solely to meet his tax obligations relating to the vesting of his restricted stock units. That doesn’t reflect his confidence, or lack thereof, in American Airlines’ business prospects.

Similarly, Vice Chair Stephen Johnson also sold about 78,000 shares at the same time for that reason.

However, investors should note that the airline industry faces challenges, including higher fuel prices that could create cost pressures. Right now, carriers have been able to raise fares, but that might not last, and American Airlines and competitors could see demand falter. Naturally, that would hurt revenue and profitability.

Investors have been cautious about American Airlines’ prospects, based on the share price performance. This year, the stock lost 22.5% through Oct. 16. That compares to the S&P 500 index’s 12.9% total return.

Source: SEC Form 4 filing for AAL | Filed: Sept. 21

Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Wall Street expects a year-over-year decline in earnings on higher revenues when American Airlines (AAL - Free Report) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on October 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis world's largest airline is expected to post quarterly loss of $0.28 per share in its upcoming report, which represents a year-over-year change of -64.7%.

Revenues are expected to be $16.2 billion, up 18.4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 211.19% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for American Airlines?For American Airlines, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.66%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that American Airlines will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that American Airlines would post earnings of $0.03 per share when it actually produced earnings of $0.15, delivering a surprise of +400.00%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

American Airlines doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerSouthwest Airlines (LUV - Free Report) , another stock in the Zacks Transportation - Airline industry, is expected to report earnings per share of $0.61 for the quarter ended September 2026. This estimate points to a year-over-year change of +454.6%. Revenues for the quarter are expected to be $8.26 billion, up 18.8% from the year-ago quarter.

The consensus EPS estimate for Southwest has been revised 23.4% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -4.13%.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Southwest will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways AAL' STARLUX codeshare links transpacific flights with connections to 20 U.S. destinations. Single-ticket & through-checked baggage are designed to streamline transfers across the network. A reciprocal loyalty pact is planned as STARLUX expands its North American footprint and Asia links. American Airlines (AAL - Free Report) is strengthening its international connectivity through a new codeshare partnership with STARLUX Airlines, expanding travel options between the United States and Asia. Under the agreement, travelers can book a single itinerary combining STARLUX’s transpacific services with AAL-operated connecting flights to 20 major U.S. destinations. The arrangement builds on the carriers’ interline agreement established in 2025 and provides passengers with conveniences such as single-ticket booking and through-checked baggage to their final destination.

The partnership significantly expands STARLUX passengers’ access to AAL’s extensive domestic network. Through Phoenix, passengers can connect to destinations including Austin, Boston, San Diego, St. Louis and Washington, D.C., while Los Angeles provides codeshare connections to New York and Miami. Several other destinations, including Atlanta, Charlotte, Denver, Dallas/Fort Worth, Las Vegas, Orlando, Chicago and Philadelphia, can be accessed through Phoenix and Los Angeles. With AAL serving more than 250 destinations across North America, the partnership creates scope for additional codeshare destinations over time.

The collaboration also strengthens AAL’s connectivity to Taipei and STARLUX’s broader Asian network, giving customers additional itinerary choices across the U.S.-Asia travel market. STARLUX has been expanding its North American footprint, including the launch of its Phoenix-Taipei route earlier in 2026, while planning further expansion into the central and eastern United States. Linking this growing transpacific network with AAL’s domestic reach should enhance connectivity without requiring the company to operate additional long-haul services on the covered routes.

Moreover, the airlines are preparing a reciprocal frequent-flyer partnership that is expected to allow eligible members to earn and redeem miles on codeshare flights. The combination of expanded connectivity, smoother transfers and prospective loyalty benefits should improve the customer proposition while broadening AAL’s international network reach. As the partnership expands to additional destinations, it could help AAL capture connecting traffic between its large North American network and STARLUX’s growing presence across Asia.

American Airlines’ Share Price PerformanceAAL’s shares have gained 24.3% over the past six months compared with the Transportation - Airline industry’s 2.5% rise.

Image Source: Zacks Investment Research

AAL’s Zacks RankAAL currently carries a Zacks Rank #3 (Hold).

Stocks to ConsiderInvestors interested in the Zacks Transportation sector may consider a couple of better-ranked stocks like Expeditors International of Washington, Inc. (EXPD - Free Report) and Seanergy Maritime Holdings (SHIP - Free Report) .

Expeditors currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

EXPD has an expected earnings growth rate of 28.6% for 2026. The company has an encouraging earnings surprise history. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 17.15%.

Seanergy Maritime Holdings currently carries a Zacks Rank #2 (Buy).

SHIP has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 38%.

The K-shaped economy is taking flight.

American Airlines CEO Robert Isom said Wednesday that just 30% of its seats account for half of the company's revenue, a proportion that has the Fort Worth-based carrier and competitors large and small ripping up existing airplane configurations to add more first class and other higher-yielding options.

"Those 30% of seats, they're only going to grow in our fleet as the reconfigurations come on board as the new aircraft deliveries come on," Isom said at a Morgan Stanley industry conference, referring to the carrier's premium seat options.

The carrier earlier this month unveiled a monster 70-suite business class cabin on its largest aircraft, a Boeing 777-300ER, with more planes still awaiting their remodeling.

watch now

American had fallen behind its large-airline competitors in profits. Isom has said that adding premium seating to capitalize on higher-spending customers, a resilient and bright spot in air travel, is key, especially as airlines try to cover this year's surge in fuel costs, their second-largest expense after labor.

Even smaller and budget carriers like Allegiant Air and JetBlue Airways are adding upgraded seat options to appeal to those flyers.

Isom told CNBC in June that the airline is also planning a revamp of its Boeing 787-8 Dreamliners and that new interiors on its 777-200s are also on tap. The airline is set to order new wide-body aircraft this year, Isom said.

Read more CNBC airline newsCompanies spurn airlines’ cheapest business class ticketsAmerican Airlines will stop upgrading elite flyers to business from coach on long domestic flightsWhy flights are so expensive and will likely stay that waySouthwest Airlines put Texas jet fuel on a boat to LA for the first time amid supply worriesUnited Airlines’ new upsell: Keeping other travelers out of the middle seatRecord heat, crowds drive offseason boom in international travel

American Airlines is finally giving a green light to seatback screens as the carrier works to close a profit gap with rivals Delta Air Lines and United Airlines. But customers will have to wait a little while.

The new screens, which will feature 4K displays, will start appearing with new deliveries from Boeing and Airbus in 2028. The airline will also retrofit aircraft so passengers in all cabins will be able to use the screens and other additions like Bluetooth audio pairing and USB-C charging.

American has been "seriously considering" the technology, along with a major cabin revamp, for months. The company had long eschewed seatback screens, with executives contending that it wasn't worth the cost of equipment and weight they added to the aircraft and saying they expected flyers to use their own devices for entertainment.

"The technology has advanced so much from when we made this decision more than a decade ago," Chief Customer Officer Heather Garboden said in an interview. "Ultimately, when you have customer preference and customer satisfaction improvements, that also generates revenue."

She declined to say how much American is spending on the initiative but said the installations should be complete in the early 2030s.

On Tuesday, American announced that its revamp will include more first-class seats on its Airbus A321neos and its Boeing 737 Max 10s, though deliveries of the latter are still several years away. American is also adding more extra legroom seats across its fleet.

Those premium seats can be double the price of a coach ticket or more. For example, a round-trip ticket from New York's John F. Kennedy International Airport to Dallas Fort Worth International Airport was going for $447 in coach and $1,161 in first class.

American CEO Robert Isom told CNBC in June that he and his team are working to close the profit gap with its large airline competitors, through more premium seats, plush lounges and improving the airline's network. He said American is also planning to refurbish its Boeing 787-8 Dreamliners with the carrier's new business-class suites, and add more of them. The carrier is also in the market for new wide-body planes and has been evaluating options from Boeing and Airbus.

American reported a profit of $71 million for the second quarter, compared with United's $805 million and Delta's $1.6 billion in the same period.

Read more CNBC airline newsCompanies spurn airlines’ cheapest business class ticketsAmerican Airlines will stop upgrading elite flyers to business from coach on long domestic flightsWhy flights are so expensive and will likely stay that waySouthwest Airlines put Texas jet fuel on a boat to LA for the first time amid supply worriesUnited Airlines’ new upsell: Keeping other travelers out of the middle seatRecord heat, crowds drive offseason boom in international travel

Key Takeaways American Airlines operated its first commercial flight powered by eSAF from Corpus Christi to DFW. Infinium's eSAF can cut lifecycle GHG emissions by more than 90% versus conventional jet fuel. AAL secured an offtake deal for Project Roadrunner, expected to deliver eSAF starting in 2027. American Airlines’ (AAL - Free Report) first commercial passenger flight powered by eSAF (electro-sustainable aviation fuel) marks a significant step in its efforts to advance sustainable aviation. The flight, operated from Corpus Christi to Dallas Fort Worth, demonstrates that Infinium’s eSAF, produced from waste carbon dioxide and renewable electricity, can be blended with conventional jet fuel and used in existing aircraft and fueling infrastructure without modifications.

The milestone strengthens America’s position in adopting next-generation SAF and could support its long-term efforts to reduce carbon emissions. Infinium’s eSAF can lower lifecycle GHG (Greenhouse Gas) emissions by more than 90% compared to conventional jet fuel, while the use of drop-in fuels reduces the need for changes to aircraft or airport infrastructure.

More importantly, American has secured an offtake agreement for commercial volumes from Infinium’s Project Roadrunner, which is expected to begin eSAF production and deliveries in 2027 and produce more than 5 million gallons annually at full capacity. This provides Americans with a potential source of lower-carbon fuel as SAF adoption expands, although the limited scale and currently higher production costs of alternative fuels remain challenges to widespread deployment.

Overall, the development is positive for America as it advances its sustainability strategy, diversifies its fuel supply and gains experience with eSAF ahead of broader commercial availability. However, the near-term financial impact is likely to remain limited given the small scale of eSAF production relative to the airline industry’s overall fuel requirements.

AAL’s Share Price PerformanceAAL’s shares have gained 37.6% over the past year compared with the Transportation - Airline industry’s 24% growth.

Image Source: Zacks Investment Research

AAL’s Zacks RankAAL currently carries a Zacks Rank #3 (Hold).

Stocks to ConsiderInvestors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. (EXPD - Free Report) and Teekay Tankers Ltd (TNK - Free Report) as well. 

Expeditors currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

EXPD has an expected earnings growth rate of 28.6% for 2026.  The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 17.15%.

Teekay Tankers currently carries a Zacks Rank #2 (Buy).

TNK has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 10.9%.

Milestone flight demonstrates real-world deployment of ultra-low carbon electrofuels produced at Project Pathfinder from waste CO₂ and renewable energy.

, /PRNewswire/ -- American Airlines and Infinium today announced its first delivery of electro sustainable aviation fuel (eSAF) to a commercial airport for use in a commercial passenger flight, marking a major milestone in the decarbonization of aviation. The eSAF was allocated to an American flight that departed Corpus Christi International Airport (CRP) and landed at Dallas Fort Worth International Airport (DFW), demonstrating the real-world deployment of next-generation, drop-in sustainable aviation fuel.

American Airlines and Infinium advance aviation with commercial deployment of electro sustainable aviation fuel. The eSAF used for the flight was part of a batch produced and blended at Infinium's Pathfinder facility in Corpus Christi, Texas — the world's first commercial-scale power-to-liquids eFuels production site, which has been operating since 2023. The eSAF batch was blended with conventional jet fuel and tested to meet the ASTM International specification for JetA, certifying its use in today's aircraft engines and fueling infrastructure without further modification. It was then delivered to the common jet fuel tanks at CRP before being allocated to American's flight to DFW — the first delivery of SAF made without biobased feedstocks to a commercial airport in the U.S. The flight demonstrates the compatibility of eSAF with existing aviation jet fuel supply chains. 

Infinium's eSAF is made using waste CO₂ and renewable electricity, delivering a meaningful reduction in lifecycle greenhouse gas (GHG) emissions compared to conventional jet fuel. Infinium's eSAF can reduce lifecycle GHG emissions by over 90% compared to conventional petroleum-based jet fuel.

"Since 2023, we have been producing scalable, drop-in eDiesel and eNaphtha at our Pathfinder facility from waste carbon and renewable energy for use in commercial trucks and plastics processing," said Infinium CEO Robert Schuetzle. "Adding eSAF to our product slate — and seeing it power a commercial passenger flight — marks another meaningful step forward in bringing practical, low-carbon fuel solutions to industry."

American Airlines, a leader in advancing sustainable aviation fuel adoption, is working across the value chain to accelerate deployment of low-carbon aviation solutions. The airline has an offtake agreement for commercial volumes of eSAF from Infinium's Project Roadrunner, supported in part by a separate agreement with Citi to enable Scope 3 emissions reductions from employee travel. These partnerships reinforce the collaboration needed to scale next-generation fuels. Project Roadrunner, financed by Breakthrough Energy Catalyst and Brookfield Asset Management, with nonrecourse project debt from HSBC, is currently under construction and expected to begin eSAF production and deliveries in 2027. Once it reaches full capacity, Project Roadrunner is expected to produce over 5 million gallons of eSAF annually.

"This flight represents a significant moment for aviation," said American's CEO Robert Isom. "Through our partnership with Infinium, we're demonstrating how next generation technologies like eSAF can move from early investment to real-world application. Scaling SAF production at lower prices is essential to reducing emissions, strengthening our long-term competitiveness, and continuing to deliver the connectivity and economic benefits that our customers rely on."

Aviation currently consumes nearly 100 billion gallons of jet fuel annually, with global air travel exceeding 4 billion passengers per year. Despite growing momentum, sustainable aviation fuel accounts for less than 1% of total jet fuel use worldwide. Scalable, drop-in fuels like eSAF offer one of the most near-term and practical solutions for reducing aviation emissions. Scaling eSAF also strengthens energy security by diversifying aviation fuel supply, helping create a more resilient system.

"This first-of-its-kind eSAF flight from American Airlines and Infinium is an important step for lower carbon aviation and we are proud to support this effort with our long-time partner," said Citi Head of Enterprise Services and Public Affairs Edward Skyler. "Given the potential SAF has on reducing emissions, we look forward to efforts to scale its production."

Today's flight marks a transition from innovation to implementation, signaling a new phase in scaling viable, low-carbon alternatives to conventional jet fuel and advancing the future of sustainable flight.

"South Texas has long been an energy leader, and today's sustainable aviation fuel announcement shows how our region continues to innovate," said Congressman Vicente Gonzalez (TX 34). "The work Infinium and American are doing in Corpus Christi strengthens our local economy while advancing our nation's energy security. We need to continue investing in domestic energy production to help create American jobs and reduce our reliance on foreign energy sources."

About American Airlines Group (NASDAQ: AAL)

American Airlines is a premium global airline connecting more of the U.S. to the world. With roots tracing back to an air mail carrier in the Midwestern United States in 1926, American now operates more than 6,000 daily flights to more than 350 destinations in more than 60 countries and serves more than 200 million customers annually. Powered by a proud and talented team of 130,000 aviation professionals, American's team lives out the airline's purpose of caring for people on life's journey every day.

The world's largest airline proudly celebrates its centennial year in 2026, reaching a milestone that reflects a century of innovation and the Forever Forward℠ spirit that changed the industry and the world. American introduced the first scheduled air cargo service, the first airport lounge and the first airline loyalty program and continues to reinvent the customer experience today. The airline is also a founding member of the oneworld alliance, whose members serve more than 900 destinations around the globe.

Get the latest about American at news.aa.com and @AmericanAir.

About Infinium
Infinium is reimagining how the world powers, moves, and computes. Through Infinium Energy™, the company transforms waste carbon into ultra-low carbon eFuels that decarbonize aviation, industry, and transport. Through Infinium Edge™, Infinium advances next-generation thermal infrastructure for data centers, removing heat as a constraint to enable more efficient, high-performance computing. Grounded in deep chemistry and energy systems expertise, Infinium's platforms turn carbon and heat from limits into opportunities. Learn more at https://www.infiniumco.com/. 

SOURCE Infinium

American Airlines (AAL +6.79%) reported second-quarter results on Thursday and lowered its outlook for the year. Initially, investors were spooked, and the stock fell about 8% to close at $13.56.

Then on Friday they bought it back. Shares rose 6.8% to $14.48, recovering much of the drop in a single session.

Two days, two opposite verdicts on the same report. What gives?

A record quarter and a worse year The quarter itself was not bad at all.

Second-quarter revenue came in at $16.7 billion, up 16.3% year over year and the highest quarterly revenue in the company's history.

American posted net income of $71 million, or $0.11 per diluted share, on a generally accepted accounting principles (GAAP) basis. On a non-GAAP (adjusted) basis, net income was $99 million, or $0.15 per share.

Image source: Getty Images.

Then came the outlook. Management now expects full-year adjusted earnings per share somewhere between a loss of $0.65 and a profit of $0.65. The prior range ran from a loss of $0.40 to a profit of $1.10.

The midpoint of that new range is zero -- and that's for a company generating record revenue.

The cause is not complicated, and management named it. Aircraft fuel expense rose by more than $2.2 billion in the second quarter, an 83.3% increase year over year, lifting the average price American paid to $4.05 per gallon.

For context, $2.2 billion is more than 13% of the quarter's entire revenue, added to the cost side in twelve months. Almost any airline's profit would disappear under a move like that, and arguably American's thin margin makes it the most exposed of the big three.

What Friday's buyers were looking at So why buy the stock a day later? I think there are several reasons.

First, American guided for third-quarter revenue growth of 16% to 19% year over year -- an acceleration from the 16.3% it just posted. Demand isn't softening. And the company said it offset nearly 50% of the fuel headwind in the second quarter through higher fares, which is a meaningful thing for a business often accused of having no pricing power.

The second is the fuel price itself. Management's third-quarter outlook assumes an average of $3.75 per gallon, down from the $4.05 it paid in the second quarter. That still implies about $1.7 billion of additional fuel cost versus the third quarter of 2025, so the pressure hasn't gone away. But the direction has changed at the margin.

Put those together, and the bull case is straightforward. The revenue engine is running faster than it has in years, and what broke the profit forecast is a commodity price rather than anything American is doing in its own operation -- and commodity prices move in both directions.

Of course, the bear case sits in the same guidance. Third-quarter adjusted earnings are forecast between a loss of $0.70 and a loss of $0.10 per share. That is a loss at every point in the range, during what is normally the industry's strongest stretch of the year. And a third-quarter loss would mean American needs a strong fourth quarter just to reach the middle of its own full-year guidance range.

So would I buy it here? No -- and the reason has less to do with this quarter than with what American is as an investment.

Airline earnings are often a small difference between two enormous numbers, and one of those numbers is a commodity the company cannot control. American's second quarter shows it. Revenue hit an all-time high, and the year's profit forecast straddles zero anyway.

Today's Change

(

6.79

%) $

0.92

Current Price

$

14.48

On the surface, the stock looks cheap. Shares trade at $14.48, about 23% below the 52-week high of $18.79 -- at roughly nine times the earnings analysts expect over the coming year. Most screens would call that a value stock.

But a forward price-to-earnings ratio is only as good as its denominator, and this one divides by a figure management itself says could land anywhere between a loss and a profit. A multiple built on a range that wide isn't a margin of safety.

I understand Friday's buyers, though. If jet fuel pricing eases further while revenue holds a mid-teens growth rate, the earnings math flips quickly, and it flips hardest for the carrier with the thinnest margin. But that's largely a bet on an unpredictable commodity, and I'd rather make bets I can actually analyze. Additionally, investors who want exposure to the travel recovery can get it elsewhere -- from businesses whose largest cost isn't set in a commodity market.

I'll watch this one from the sidelines.

American Airlines AAL stock opened in the red this morning as lowered profit estimates, volatile jet fuel prices, and lingering margins concerns tempered an otherwise market-beating Q2 release.

Investors are bailing on AAL also because its net income came in down sharply (88%) on a year-over-year basis even though revenue popped more than 16% versus last year.

Following the post-earnings dip, American Airlines shares are down some 25% versus their recent high.

American Airlines’ bottom-line weakness reflects the “structural headwinds” delaying its broader financial turnaround.

The company’s pretax margins – hovering around slim single-digit levels – continue to lag legacy rivals Delta and United Airlines.

Crucially, AAL’s quarterly print suggests the firm’s recent price hikes have been far from sufficient in offsetting the Iran-driven volatility in jet fuel prices.

Adding to pressure in the recently concluded quarter were severe summer weather disruptions that hit key hub operations, compounding labour and maintenance costs.

Meanwhile, rebuilding corporate share remains an uphill climb after previous distribution strategy shifts alienated corporate travel agencies, squeezing yields in high-margin cabin tiers.

Why CEO Robert Isom remains bullish for 2027?Despite near-term turbulence, chief executive Robert Isom remains resolute about the company’s trajectory, saying “we’re set up really well for 2027.”

In a post-earnings interview with CNBC, he emphasized that American Airlines leads the industry in ex-fuel cost efficiency and revenue execution across its core commercial pillars.

The carrier already has 60% of its Q3 revenue booked, supported by “strong demand” for premium seating and rising AAdvantage loyalty program engagement.

Financially, AAL has overhauled its balance sheet, achieving its healthiest debt profile since 2016 after paying down over $13 billion in total debt.

With upcoming fleet decisions for 2030s widebody replacements on the horizon, Isom is convinced that American Airlines shares have unmatched upside potential as macro pressures normalize.

From an investment perspective, AAL stock presents a classic high-risk, high-reward turnaround play.

Trading at low valuation multiples relative to historical averages and legacy peers – the firm offers a deep discount for value-seeking investors willing to tolerate near-term volatility.

However, conservative investors may prefer to wait on the sidelines until margins show consistent expansion toward Delta and United levels, particularly because American Airlines said its loss per share could come in at 65 cents this year.

Isom has now reduced future guidance twice already in 2026. And it’s now like AAL pays a solid dividend to incentivize ownership despite ongoing challenges, too.

That said, investors should note that Wall Street analysts remain bullish as ever on the airline stock for the remainder of 2026.

The consensus rating on American Airlines sits at “Moderate Buy” currently, with the mean price target of just under $20 signaling massive upside potential from here.

Flight Path to Profits: American Airlines Bets on SpaceXAmerican Airlines Group NASDAQ: AAL reported record quarterly revenue in the second quarter of 2026, as executives said gains from commercial initiatives helped offset a sharp year-over-year increase in fuel costs.

Chief Executive Officer Robert Isom said the airline delivered revenue growth of more than 16% from a year earlier, with improvement across every region served and every cabin offered. He attributed the results to American’s four-part commercial strategy: improving the customer experience, growing the global network, driving premium revenue and leading in loyalty.

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Boarding Passes Now Being Issued for the Ultimate eVTOL Arbitrage“This outstanding broad-based revenue performance reflects the strength of our commercial strategy,” Isom said. He added that the quarter’s revenue performance helped offset nearly 50% of a $2.2 billion year-over-year increase in fuel expense.

The company ended the quarter with more than $11 billion in available liquidity, and Chief Financial Officer Devon May said American finished the period with $11.3 billion of liquidity. May said the airline expects to produce positive free cash flow for the full year at the midpoint of its current guidance and to end 2026 with lower net debt than at the start of the year.

Fuel Costs Pressure Outlook Sky Wars: United's Predator Play for AmericanFuel was the central challenge discussed on the call. May said second-quarter fuel expense increased more than $2.2 billion, or 83%, from a year earlier. He said fuel forecasts had worsened quickly in recent weeks, with expected third-quarter fuel expense rising more than $700 million since the beginning of July and nearly $230 million in the prior week alone.

Based on the forward curve as of July 21, American expects an average fuel price of about $3.75 per gallon in the third quarter, which would result in a $1.7 billion year-over-year increase in fuel expense for the quarter.

As a result, American now expects third-quarter capacity to rise 3% to 5% year-over-year, about two percentage points lower at the midpoint than originally planned. May said the company will continue to evaluate capacity based on fuel prices and demand trends.

The airline guided to a third-quarter adjusted loss per diluted share of $0.70 to $0.10. For the full year, American adjusted its guidance to a range between a loss of $0.65 and a profit of $0.65 per diluted share. Isom said the company expects full-year adjusted earnings to be breakeven at the midpoint despite an anticipated nearly $6 billion year-over-year fuel headwind.

Revenue Strength Broad-Based Across Regions Chief Commercial Officer Nat Pieper said total revenue increased 16.3% year-over-year in the quarter, reaching the high end of the airline’s initial guidance. He said all geographic regions exceeded the company’s initial expectations.

Domestic unit revenue increased nearly 11%, with Washington National, Dallas Fort Worth and Los Angeles cited as standouts. Atlantic unit revenue rose about 9%, led by London. Pacific unit revenue increased 15%, with Japan described as noteworthy. Latin America unit revenue rose about 7%, supported by a recovery in Mexico beach demand. Pieper said customer experience metrics also improved. Total Net Promoter Score increased five points year-over-year, and for on-time flights, NPS improved for the 15th time in 17 months. He also cited a 7% year-over-year improvement in the ACSI survey.

The airline plans to install Starlink high-speed Wi-Fi on its fleet beginning in 2027. Pieper said connectivity is increasingly important to customers and that such investments strengthen American’s competitive position.

Premium and Loyalty Remain Key Priorities American emphasized premium demand as a key driver of its strategy. Pieper said premium unit revenue increased more than 13% year-over-year, driven by strong leisure and corporate demand. Main cabin unit revenue increased nearly 9% and accelerated during the quarter.

In response to an analyst question, Pieper said premium revenue rose 19% in the quarter, compared with a 15% increase in non-premium revenue. He said premium accounts for nearly half of ticketed revenue on roughly 30% of seats. He also said nearly 60% of American’s revenue comes from households earning $150,000 or more, which he described as demand more likely to hold up during economic uncertainty.

The airline is expanding premium capacity through new Boeing 787-9 and Airbus A321XLR deliveries, as well as retrofit programs on 777-300ER, 777-200ER, A320 and A319 aircraft. Pieper said lie-flat and premium economy capacity grew nearly twice as fast as main cabin capacity during the quarter.

Corporate demand was another area of strength. Pieper said managed corporate revenue rose 26% from a year earlier, marking the fifth consecutive quarter of double-digit growth. In response to a media question about Southwest Airlines’ efforts to attract corporate customers, Pieper said American’s managed corporate revenue, small and medium business product and travel management company business were all growing, adding, “We’re not losing it.”

The AAdvantage loyalty program also posted growth. Pieper said enrollments increased more than 30% year-over-year in the second quarter, surpassing the record growth achieved in the first quarter. He said the largest enrollment gains occurred in New York City, Chicago and Los Angeles, with international growth also strong. Co-branded card spending across American’s Citi portfolio grew 8% year-over-year.

Network, Fleet and Balance Sheet Plans American executives said the airline is focused on improving hub performance and selectively growing its network. Pieper said a new bank structure at Dallas Fort Worth, implemented in April, has reduced systemwide misconnects by nearly 25% year-over-year and helped DFW unit revenue outperform the system average by about four points.

The airline also launched new routes from Philadelphia to Budapest and Prague, and from Dallas Fort Worth to Athens. Pieper said American resumed service to Venezuela with flights to Caracas and Maracaibo, describing the airline as the first U.S. carrier to do so.

May said American expects to take delivery of 48 new aircraft this year and continues to expect about $4 billion in capital expenditures for 2026. In response to an analyst question, he said 2027 capital expenditures are likely to be around $4.5 billion, while noting that some delivery schedules later in the decade still need smoothing.

On the balance sheet, May said American completed about $1.3 billion in incremental financings during the second quarter, bolstering liquidity and addressing its only meaningful 2027 maturity. He said the company’s longer-term goals remain reducing total debt to inside $35 billion, bringing net debt well inside $30 billion and achieving a double-B credit rating, which would require net debt to EBITDA inside three turns.

Isom closed by saying American remains focused on execution, customer service and long-term value creation. He said the company still has work to do but is seeing momentum from its strategy and expects additional progress in 2027 and beyond.

About American Airlines Group (NASDAQ:AAL)American Airlines Group Inc is a leading global airline holding company headquartered in Fort Worth, Texas. Formed in December 2013 through the merger of AMR Corporation (parent of American Airlines) and US Airways Group, the company operates one of the world's largest passenger and cargo networks. Its subsidiaries include American Airlines, which provides mainline service, and American Eagle, a network of regional carriers operating short- and medium-haul routes on behalf of the mainline carrier.

The company offers scheduled air transportation for passengers and cargo to more than 350 destinations in over 50 countries.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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FORT WORTH, Texas — American Airlines CEO Robert Isom has a math problem.

The carrier is flying about 6,500 flights per day this year — nearly an entire Alaska Airlines more worth of travel more than its closest competitor, according to Cirium — yet American's profit gap has grown. United Airlines brought in about $3 billion more than American last year, and U.S. profit leader Delta Air Lines made nearly $5 billion more.

In an exclusive interview with CNBC late last month, Isom said American and its nearly 140,000 employees want "to be best at everything that we do." He said that carrier's "long-range plan is certainly making up the margin gap," but he didn't put a timeline on that goal.

American's top executives at the carrier's headquarters late last month outlined new initiatives to CNBC: bigger, more luxe airport lounges, a new wide-body aircraft order, and fresh interiors for even more of its long-haul fleet to attract big spenders.

Isom described the carrier's identity as "a premium global airline with the largest footprint in North America."

American has more decisions it needs to make — and soon — to close the gap. Perhaps its biggest challenge is getting customers to shell out more to fly, something Delta and United zeroed in on years ago.

American has mastered running an efficient business but "what we will measure over time is: Are we closing this revenue gap and closing the unit revenue gap?" American CFO Devon May said.

Cabins, planes and loungesThe carrier's executives reiterated that American's plan rests on growing its ever-more important loyalty program, improving customers' experience, expanding its network and increasing higher-end revenue. 

The airline is forecast to earn 64 cents a share this year, on an adjusted basis, which would be up almost 80% from last year, according to analyst estimates. It will give an updated forecast when it reports second-quarter results on Thursday.

United and Delta earlier this month reported bookings are still strong. The surge in fuel prices have both helped and hurt the industry this year: The sudden run-up in prices because of the Iran war took carriers off guard, though they're passing more of those costs along to travelers, and executives don't expect fares will drop much anytime soon.

Wall Street is optimistic American will continue to improve, expecting it to quadruple adjusted earnings in 2027 to $2.58 a share.

American is now remodeling cabins across the fleet and taking deliveries of new planes with interiors that feature new amenities and more premium seats. Executives have said they're considering but haven't decided on bringing back seatback screens to much of its narrow-body fleet, though American recently joined the ranks of airlines that are adding satellite Wi-Fi from SpaceX's Starlink.

Customers who are willing to pay more for premium seats or other perks like lounge access have been a bright spot across the industry, and everyone from profit leader Delta to now-defunct budget carrier Spirit Airlines has tried to woo those travelers as airlines rush to get fancy, new seats — small but profitable real estate — in the air.

Isom told CNBC that work to refresh cabins will soon expand to American's Boeing 787-8 Dreamliners. Its revamped cabins on its largest planes, the 777-300ERs, could debut in the next few weeks. Each business-class, lie-flat seat can bring in close to $10,000 on some long-haul international routes compared with $2,000 or even much less for a seat in the back.

Keeping up high-touch service levels could be a challenge, the airline's flight attendant union said, as the 70-seat business class soon comes online. American has been phasing out planes with separate first and business classes.

"Now, as American introduces 70 Business Suites and markets a premium international experience, they're expecting a reduced number of Flight Attendants to deliver significantly more personalized service," Julie Hedrick, president of the Association of Professional Flight Attendants, said in a statement. (American reduced flight attendant staffing on those aircraft from 13 to 11 in 2020. Other carriers have made similar moves.) "The result will be longer service times and a customer experience that falls short of what passengers expect."

In another lure for premium travelers, Chief Customer Officer Heather Garboden told CNBC that American is going to build the biggest Admirals Club lounge in its network, at 37,000 square feet, at its sprawling Dallas Fort Worth International Airport hub in Terminal C.

At the under-construction Terminal F at that airport, American is also planning a grab-and-go Provisions airport lounge, as well as a Flagship check-in area in Terminal D. The entire airport, American's largest hub, is undergoing a $12 billion makeover, and the carrier recently unveiled new gates in Terminal C, which will expand further. American and others have been upgrading and expanding airport lounges for the spendiest customers around the U.S.

But United has had a roughly decade head start at catering to higher-paying travelers, while Delta has close to two decades of experience. In the late 2000s, Delta was giving away about 90% of its domestic first-class seats through free upgrades for frequent flyers, but now it says it sells the vast majority, with customers paying cash or redeeming miles, now a trend among big carriers, though American wants to increase buy-ups.

Under Isom, American has been upping its game in premium investments. American's commercial team is working on technical changes that aim to offer customers more opportunities to buy pricier seats.

Aside from its of fortress hubs, American's chief commercial officer, Nat Pieper, said the airline needs to win in so-called jump-ball markets like Los Angeles, Chicago and Washington, D.C. He said American continues to grow sign-ups for its lucrative credit card program in some of those, including New York.

American said it's flying is split about 80% domestic versus 20% international. International flights often carry a high premium compared with domestic routes — and the planes serving them generally have more luxurious seats on board.

Isom said the airline's network breadth is a major strong suit and will continue to be.

While American and other airlines rely on alliances and partnerships to expand reach, United is flying a lot of that itself.

United flies more internationally than Delta and American, and made its geography quiz-like network a calling card and , adding dots on the map from Mongolia to Galicia, Spain.

'Never been deterred'A mechanical engineer by education who took his first flight at about age 4, Isom rose up the ranks at Northwest Airlines and America West Airlines, which through mergers became modern-day Delta and American, respectively.

The airline industry is one of the most insular. In part, because of the safety-critical and specific knowledge needed to keep thousands of planes on track every day, airlines don't often hire from other industries, especially at the top.

The executive team that long worked at American is split between that carrier and United. The CEO of United, Scott Kirby, used to work at American, until he was fired almost exactly 10 years ago. United announced it hired Kirby as president the same day.

Isom, 62, took over the top role at American in March 2022, after the airline industry had been rocked by the pandemic.

"I've never been deterred, no matter what the challenges that we face," he said.

He took over in a quarter when American lost $1.6 billion.

"I'm clear-eyed about the challenges in this business," he said, pointing to an industry that has been through everything from the 9/11 terrorist attacks, to the financial crisis, bankruptcies, mergers and wars and disease.

American ranked sixth of 11 U.S. airlines in punctuality in the first half of the year, according to Cirium data that pointed to with a 76.6% on-time rate, while Delta and United took the No. 2 and No. 3 spots, respectively. Under Isom and COO David Seymour, the carrier is working to improve its on-time rate, spreading out its schedule instead of jamming chaotic connecting banks in major hubs, and using artificial intelligence to predict maintenance problems.

On top of that, the carrier's earnings are still hamstrung from its $35 billion debt load though American has slashed that from around a $54 billion peak coming out of the pandemic, with balance sheet improvement a major priority.

"They're a giant — with a limp," said Dennis Tajer, spokesman for the Allied Pilots Association, which represents American's 15,000 aviators. Earlier this year, the APA and the flight attendants' union called Isom's leadership into question. Underperformance from the broader company means less profit-sharing for staff.

Getting customers to notice improvements could take time.

"Changing a service culture is hard, but not impossible," said Jay Barney, a professor of strategic management at the University of Utah David Eccles School of Business. To alter overall brand perception, he said, "You have to make the changes obvious and visible, to current customers and potential customers."

One issue is that flyers are often locked in because the biggest airlines have such overwhelming market share at major hub airports, he added.

What airlines might be trying to do is "charge more to their current customers," Barney said.

Wide-body planesAmerican might be behind in its premium game, but Isom said customer satisfaction scores are rising. Chief Commercial Officer Pieper, an airline industry veteran whom the company appointed last fall as the carrier was recovering from a failed corporate sales strategy in 2024, said demand is strong across the board.

Buying new wide-body planes will be key to the airline's next phase, Isom said. An order is on the table for this year, with both Boeing and Airbus in the mix, he said.

American's more than 1,000 planes make up the youngest fleet of the three largest U.S. airlines, according to 2025 annual filings, thanks in part to a more than 400-airplane order it made about 15 years ago for new Boeing and Airbus narrow-body planes, but dozens of its Boeing 777 wide-bodies average more than two decades old.

American's refresh of those older planes, Boeing 777-200s, are next, Isom said, but the carrier is shopping for new planes.

"I think that Airbus could play a big role" in the new order, Isom said. American's wide-bodies are all currently Boeing planes.

American declined to say the size of its planned order. New aircraft for American would likely arrive in the early or middle of the next decade.

Up in Chicago, rival United — which has been duking it out with American at O'Hare International Airport — snatched up delivery slots for more than 100 Boeing Dreamliners in the last four years.

A future without UnitedAs Isom lays out his vision for the future of the airline, there's one path he says the carrier doesn't see as feasible.

United CEO Kirby suggested this year a merger with American, an idea the airline rebuffed.

"I spoke with Scott," Isom told CNBC. "Given history, given law, given past mergers, there wasn't anyone that we talked to, our advisors, interested parties, politicians, that said that there was any chance of this happening.

"At the end of the day, we spend time looking at things that have a chance of happening. We don't spend a lot of time pursuing impossibilities," he said.

United has a partnership with JetBlue (American had a more involved one with JetBlue in the Northeast but it was blocked by a judge on antitrust grounds in 2023). But Kirby has repeatedly said this year he's not interested in acquiring that New York airline. He also acknowledged that a merger with American won't happen without a willing partner in that carrier's management.

United, meanwhile, gets several slots at New York's John F. Kennedy International Airport as early as next year under the JetBlue deal.

"Why buy the cow if you're getting the milk for free?" said Brett Snyder, who writes the Cranky Flier blog.

Isom gave a standard line from executives when CNBC asked his own appetite for possible mergers and acquisitions, saying the carrier is always on the lookout for opportunities to serve the company's customers.

For now, though, Isom said he is firmly focused on American's new chapter.

He said he gravitated toward the industry "to be involved with something where you can make a difference.

"This is this one that you never wake up in the morning or going to bed at night thinking: Did I do good for somebody or something?" he said. "You certainly had the chance to in this business."

In the latest trading session, American Airlines (AAL - Free Report) closed at $16.31, marking a -3.78% move from the previous day. This move lagged the S&P 500's daily loss of 0.79%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 1.55%.

The world's largest airline's shares have seen an increase of 13.15% over the last month, surpassing the Transportation sector's gain of 3.77% and the S&P 500's gain of 4.28%.

Market participants will be closely following the financial results of American Airlines in its upcoming release. The company plans to announce its earnings on July 23, 2026. In that report, analysts expect American Airlines to post earnings of $0.05 per share. This would mark a year-over-year decline of 94.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.7 billion, up 16.02% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.49 per share and a revenue of $62.17 billion, signifying shifts of +36.11% and +13.79%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for American Airlines. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 792.54% increase. Right now, American Airlines possesses a Zacks Rank of #3 (Hold).

Looking at valuation, American Airlines is presently trading at a Forward P/E ratio of 34.58. This signifies a premium in comparison to the average Forward P/E of 11.27 for its industry.

The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 178, positioning it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.