American Airlines reported record second-quarter revenue of $16.7 billion, up 16.3% year over year, driven by broad-based demand across premium, corporate, domestic, and international travel. However, fuel expense surged 83% to $4.88 billion, largely offsetting those gains and highlighting the key risk to profitability. Management expects an additional $1.7 billion in year-over-year fuel expense in the third quarter and guided to an adjusted loss per diluted share of $0.70 to $0.10 for the period, while full-year guidance ranges from a loss of $0.65 to a profit of $0.65 per share. The airline was able to recover roughly half of the fuel cost increase through stronger pricing, but the outlook remains uncertain as fuel volatility persists.
American Airlines GroupFuel costs surged 83% to $4.88 billion, offsetting record revenue and leading to expected losses.
