American Airlines reported record revenues of $16.7 billion for the three months to June 30, but soaring fuel prices almost wiped out that strong performance as net profits for Q2 collapsed 88% to $71 million compared to the same period in 2025.
The Texas-based carrier announced on Thursday that its fuel expenses had increased by more than 83% year-over-year, with the average fuel price per gallon jumping from $2.29 to $4.05.
Coupled with American Airlines’ poor financial results for Q1, the carrier has reported a first-half loss of $311 million compared to a net profit $126m for the first six months of 2025.
Unfortunately, American now believes it might not be able to turn the situation around by the end of the year, with new guidance not ruling out a full-year loss. The reason given by the airline for this is, perhaps unsurprisingly, due to the expectation that fuel prices will remain elevated for the remainder of the year.
American Airlines has tried to put a brave face on these disappointing results, pointing to the fact that it raked in record Q2 revenue, with premium cabins outperforming cheaper seats, and its strong domestic network seeing year-over-year revenue growth of 10.6%.
“American delivered year-over-year revenue growth of more than 16% in the second quarter, exceeding our initial expectations and continuing the momentum we’ve built across the business,” commented the airline’s beleaguered boss, Robert Isom.
“This performance reflects the strength of our commercial strategy, driven by our four pillars: elevate the customer experience, grow the global network, drive premium revenue and lead in loyalty.”
The story that Isom is trying to tell is that if it weren’t for surging fuel prices, American’s revenue efforts and efficiency improvements would have landed the airline in a very different place than it currently finds itself in.
What Isom’s critics will counter, though, is that American’s push for premium has come far too late. While Isom pursued a strategy that saw the airline go head-to-head with discounters like Frontier Airlines and the now-defunct Spirit Airlines, its real rivals, Delta and United, forged ahead in attracting big-spending premium travelers.
American Airlines is now belatedly pursuing premium travelers, while still offering a low-cost-esque product across its domestic network.
The situation is far from dire, but these latest financial results will likely pile even further pressure on Isom and American’s board of directors to change the leadership at the very top.
