U.S. airlines lost $966 million in the first quarter of 2026, a sharp reversal from robust gains through most of last year.
The figure was released Tuesday in a report from the U.S. Bureau of Transportation Statistics, which collected data from all 22 scheduled passenger carriers in the country. The bureau is required to publish information on airline income on a quarterly basis by the Office of Management and Budget.
For comparison, U.S. airlines lost around $200 million in the first quarter of 2025. Net income surged to $4 billion in the second quarter of that year, with a more modest $1.6 billion posted in Q3 and $600 million reported in Q4.
The Bureau of Transportation Statistics did not explicitly link the loss to any single factor or factors, though spending on fuel increased during the quarter as fighting in the Middle East effectively shut down the Strait of Hormuz and damaged oil infrastructure in several countries.
Second-quarter statistics will likely reflect even greater fuel expenses in the April-June period.
The report noted that earnings from fares as a percentage of total income dipped slightly, while baggage fees made up some of the ground.
The 17 U.S. airlines that fly internationally posted an after-tax net loss of $435 million in the first quarter.
