American Airlines posts narrower Q3 loss but cuts full-year outlook

American Airlines reported a third-quarter loss of $0.28 per share, beating estimates by $0.07. Revenue came in at $16.34bn, just short of the $16.38bn analysts had expected.

CEO Robert Isom pointed to record third-quarter revenue growth, driven by the airline's commercial strategy and particularly its premium business. He said he expects another quarter of record revenue growth in the fourth quarter, even with fuel prices running historically high.

For the fourth quarter, American Airlines expects available seat miles to rise 5.5% to 6.5% from a year earlier, with total revenue growing 19.5% to 22.5%. It expects unit costs, excluding fuel, special items and profit sharing, to rise 2.5% to 3.5%. The company expects an adjusted loss of $0.50 to $1.10 per share for the quarter.

The bigger shift is in the full-year outlook. American Airlines now expects an adjusted full-year loss of $1.00 to $1.60 per share, well below breakeven and a sharp step down from the range it gave in July, which spanned a loss of $0.65 to a profit of $0.65. Management also said network growth in 2027 will slow because of elevated fuel prices, extending the pressure into next year. The airline is counting on fourth-quarter revenue growth to outrun those costs, and the next two quarterly reports will show whether it can.