American Airlines CEO Warns High Jet Fuel Prices Could Force More Flight Cuts

CommodityMacroIndustry Impact 4
โดย TheStreet·US·Read original
Summary · why it matters

American Airlines CEO Robert Isom warned that sustained high jet fuel prices will require adjustments to the carrier's capacity planning, speaking at the annual Morgan Stanley Laguna Conference in California on Sept. 16. Jet fuel averaged $4.53 per gallon for the week ending Sept. 18, a nearly 80% increase from the national average a year ago, driven by the war in Iran and the closure of the Strait of Hormuz following the U.S.-Israeli strike on Iran at the end of February 2026. American Airlines has already suspended routes at Los Angeles International Airport from cities including Cleveland and Pittsburgh and cancelled several high-profile routes to Middle Eastern cities, and Isom said more cancellations could follow if prices stay at current levels for months. Isom said he still expects American's third-quarter revenue to rise between 16% and 19% when earnings are reported later in October, noting that 30% of the airline's high-fare seats generated 50% of its total revenue in recent months. United Airlines CFO Michael Leskinen and Southwest Airlines CFO Tom Doxey echoed the concerns at the same investor gathering, with Leskinen saying the airline is flying to maximize profitability and free cash generation rather than market share, and Doxey saying trimming capacity is a natural response if fuel stays higher for longer. Consumer Price Index data showed the average flight within the U.S. sold in June, July, and August cost 25% more than during the same months in 2025.

Impact on stocks 3

Industrials▼ · 3 stocks
American Airlines Group
AAL
▼ NegativeSupplyrelevance

CEO warns sustained high jet fuel prices will force more capacity cuts and route cancellations.

United Airlines Holdings Inc
UAL
▼ NegativeSupplyrelevance

CFO Leskinen echoed fuel-cost concerns, saying the airline is flying to maximize profitability rather than market share.

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