American Airlines cut its full-year profit outlook on April 23, 2026, stating that surging fuel prices are expected to add more than $4 billion to its fuel bill this year if current pricing holds.
The carrier reported record first-quarter revenue of $13.9 billion, but nevertheless posted a net loss of $382 million as higher costs offset strong demand.
According to American, it is recovering only about half of the extra fuel cost in the second quarter through fares increases and schedule adjustments, though it expects that recovery rate to improve later in 2026.
American also noted that is exploring a broader commercial relationship with Alaska Airlines that could include revenue sharing. The airlines are in early talks over a potential revenue-sharing arrangement and other partnership options. The discussions were described as preliminary.
Such a deal would build on a relationship already established through the Oneworld alliance and earlier cooperation on West Coast capacity for international flying.
In 2020, American and Alaska said that their partnership would connect Alaska’s West Coast network with American’s long-haul international services, giving both carriers broader reach without a merger.