A sharp increase in the price of jet fuel stemming from the war in Iran threw a wrench into American Airlines’ plans to grow its profits in the second quarter.
An earnings report released Thursday shows American’s fuel expense increased by over $2.2 billion, or 83%, year over year. The airline said it was able to offset about 50% of that headwind through higher fares.
Increased ticket prices helped boost American’s operating revenue to $16.7 billion, up 16.3% from the second quarter of 2025. The carrier’s net income was $71 million, or 11 cents per share, down from $599 million, or 91 cents, in the same period last year.
American CEO Robert Isom said revenue growth was strong across all entities and cabins, with premium, main cabin, domestic, and international “all up meaningfully year over year.”
Premium continued to be a standout for the airline, with passenger unit revenue up 13.4%.
Domestic demand rebounded from 2025, with revenue growth of 10.6%.
In American’s international markets, earnings climbed by about 15% in the Pacific, 9% in the Atlantic, and 6.6% in Latin America.
Managed corporate revenue climbed 26% year over year.
Despite these positive signs, however, the airline adjusted its full-year guidance downward, citing a projected $1.7 billion increase in fuel expense in the third quarter of 2026. American is now expecting full-year results between a loss of 65 cents per share and a profit of 65 cents per share.
