The American airline American Airlines lowered its profit forecasts for 2026 due to the rise in fuel prices due to the war in the Middle East and predicted an increase of more than 4 billion dollars in expenses related to this increase in prices.
The company, one of the main airlines in the United States, estimates an adjusted loss per share of US$0.40, compared to a profit of US$1.10 per share, in fiscal year 2026.
Last January, the company had forecast that it would earn earnings per share of between $1.70 and $2.70 that year.
The company also said it expects an increase of more than $4 billion in expenses related to higher jet fuel prices.
The company’s CEO, Robert Isom, was optimistic, saying in an interview with CNBC that the company will recover: “The key to this lies in the balance between supply and demand. We will act quickly to adapt our flights if necessary.”
The airline today broke down its first-quarter results, when it posted record revenue of $13.9 billion and reduced its debt to $34.7 billion, the company’s lowest level since mid-2015.
In the statement, Isom stressed that the company expects moderate profitability by 2026, “assuming that the current future fuel price curve is maintained.”
American Airlines also highlighted in the note that its business depends largely on the price and availability of jet fuel.
“Prolonged periods of high volatility in fuel costs, rising fuel prices or significant supply disruptions could have a significant negative impact on consumer demand, our operating results and our liquidity,” he noted.
Given the rise in fuel prices due to the war in Iran, which began last February with the attacks by the United States and Israel against that country, fuel prices have become more expensive and some airlines, such as United Airlines and now American Airlines, have reduced their revenue forecasts or cut their capacity.