American’s profits still in the red, but the wings are getting steadier

The good news: the plane is flying straighter

American Airlines came in with first-quarter 2026 revenue of $13.9 billion, up 10.8% and a touch above Wall Street’s expectations. Losses still happened — because, well, airlines — but they shrank: adjusted net loss came in at 40 cents a share versus the 47-cent loss analysts were bracing for.

Margins are doing the awkward-but-important work

This is the kind of report that makes investors squint a little less. Operating loss narrowed to $41 million from $270 million a year ago, and pretax margin improved by nearly 2 percentage points. Revenue per available seat mile rose 7.6%, helped by stronger demand and better pricing, especially in premium and Atlantic markets.

Then comes the fuel-shaped pothole

Here’s the catch: fuel costs are not playing nice. American said aircraft fuel costs jumped 13.2% in the quarter, and it now expects more than $4 billion in extra fuel expense. That’s a big ol’ headwind for an airline that had just been showing off its improving numbers like a kid who finally cleaned its room.

The outlook: better than feared, not exactly a victory lap

For Q2, American sees revenue of $16.344 billion to $16.776 billion and adjusted EPS ranging from a 20-cent loss to a 20-cent profit. But the real headline for long-term investors is the full-year reset: management cut 2026 adjusted EPS guidance to a 40-cent loss, down from a prior call for $1.70 to $2.70 in profit.

Big picture: demand looks solid, operations are improving, and cash flow is holding up. But if fuel stays spicy, American may have to keep flying with one hand on the throttle and the other on the cost-cutting lever.