American Airlines Cuts Guidance as Fuel Costs Surge, Shares Fall

American Airlines (AAL) slashed its full-year guidance, citing rising fuel costs tied to the war in Iran, and warned of slower network growth in 2027. Shares fell more than 3% in early trading Thursday, dragging down Delta (DAL), United (UAL) and other major carriers. The Fort Worth, Texas-based airline now expects an adjusted loss of $0.50 to $1.10 per share for the current quarter, steeper at the midpoint than the Visible Alpha consensus of a $0.56 loss. For the year, it projects a per-share loss of $1.00 to $1.60, down from July guidance ranging from a $0.65 loss to $0.65 profit. American anticipates an average fuel price of about $4.70 per gallon based on the forward curve as of October 19, nearly double the fourth quarter of 2025, adding roughly $2.8 billion in fuel expense. Third-quarter adjusted loss was $0.28 per share, narrower than estimates, on revenue up 19% year-over-year to more than $16.3 billion.