American Airlines GroupJet fuel costs surged due to Middle East conflict, causing American Airlines to cut earnings guidance.
U.S. airlines are slashing earnings forecasts after renewed Middle East hostilities pushed jet fuel costs sharply higher. Southwest Airlines reported a $900 million year-over-year jump in second-quarter fuel expenses, a $1.17 headwind to adjusted earnings per share, and cut its full-year 2026 adjusted EPS guidance to a range of $3.25 to $4.25 from at least $4.00. American Airlines saw fuel expense surge over $2.2 billion, or 83%, and now expects full-year adjusted diluted EPS between a loss of $0.65 and earnings of $0.65, with a third-quarter loss of $0.10 to $0.70 per share. United Airlines anticipates nearly $6 billion in added fuel expense for full-year 2026 and reported a $2.3 billion, or 84%, jump in second-quarter fuel costs. The spike follows the collapse of a U.S.-Iran memorandum of understanding and a ceasefire, which reignited crude and fuel price rallies, while record U.S. fuel exports and tight global markets add further pressure.
American Airlines GroupJet fuel costs surged due to Middle East conflict, causing American Airlines to cut earnings guidance.
Southwest Airlines CompanySouthwest Airlines reported $900M jump in fuel expenses and cut 2026 EPS guidance.
United Airlines Holdings IncUnited Airlines expects nearly $6B in added fuel expense for 2026 due to higher jet fuel costs.