American Airlines suspends six routes as fuel costs surge
The airline cut its 2026 profit forecast in April after fuel prices rose sharply following U.S. and Israeli military action against Iran, according to AirMag.aero.
Published
American Airlines will suspend six domestic routes for two months, from August 5 through October 5, citing high fuel costs, according to Aviation Week. A company spokesperson told the outlet the move is a seasonal adjustment, not a permanent cut, as the airline refines its capacity growth plans for 2026.
Jet fuel prices have risen 56% since the United States and Israel launched military action against Iran in late February 2026, according to AirMag.aero, which cited International Air Transport Association data. The outlet said a barrel of jet fuel has gone from roughly $99 before the military action to nearly $142 by late May.
American expects its fuel bill to rise by more than $4 billion in 2026, AirMag.aero reported, citing remarks by chief executive Robert Isom at Bernstein's Strategic Decisions Conference. Isom said higher fuel costs could add $4 billion to $5 billion to the airline's annual expenses. In April, American cut its full-year profit forecast, revising adjusted earnings guidance to a range of -$0.40 to $1.10 a share, down from a prior range of $1.70 to $2.70, AirMag.aero reported.
The airline has cut capacity for fuel reasons before. In 2011, American reduced fourth-quarter mainline capacity by about 3% year over year and retired as many as 11 Boeing 757 aircraft, according to an AMR Corp filing with the Securities and Exchange Commission.
The latest move sits at odds with American's recent public confidence in its guidance and growth plans, including capacity expansion tied to premium cabin retrofits. A capacity cut driven by fuel costs points to margin pressure that management had not flagged only weeks earlier, and raises the question of whether internal forecasts have worsened sharply or whether near-term profitability will come under strain despite those investments.