American Airlines cut its profit outlook on Thursday, making it the latest company in the industry to do so as the war in Iran continues to cripple the global energy market.
American saw a $4 billion increase in expenses related to higher prices for jet fuel, according to its first quarter 2026 financial results. The airline reported it could lose as much as 40 cents per share on an adjusted basis, or turn a profit as high as $1.10 a share, in its updated financial outlook. The development comes after it projected adjusted earnings as high as $2.70.
“Based on the forward fuel curve and the current revenue outlook, the midpoint of the full-year guidance is expected to be approximately flat to 2025, despite a greater than $4 billion increase in expense related to higher prices for jet fuel,” American said in a press release.
CEO Robert Isom expressed confidence in the company’s direction in a statement.
“Even in a volatile operating environment, our pretax margin improved by nearly 2 points year over year, and we still anticipate modest profitability for the year assuming the current forward fuel curve,” he said.
Asia has been hit hardest by the global energy crisis, which began when the United States and Israel’s war in Iran led to the essential closure of the Strait of Hormuz, the waterway for much of the world’s oil and gas supply.
But the U.S. has also been affected, as airlines struggle to keep up amid fuel shortages and rising energy prices. United Airlines CEO Scott Kirby said Wednesday that he expects a 15%-20% increase in ticket prices due to the crisis and now expects adjusted earnings of $7 to $11 per share for 2026, down from the January forecast of $12 to $14 per share.
Delta Air Lines and Southwest Airlines are among other airline giants that have been hit by the debacle. Southwest reported its first-quarter adjusted earnings this week of 45 cents per share, missing analysts’ estimate of 47 cents.
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Southwest Airlines CEO Bob Jordan warned earlier this month that global conflicts and volatile oil prices could eventually affect consumers.
“We don’t control the war, we don’t control fuel prices,” he said during an interview with ABC News. “If input costs come up and they stay there — it’s like any other industry where supply chain costs rise. The fares will have to adapt, and therefore that’ll affect the consumer.”