American Airlines Group Inc. reported record first-quarter revenue but remained loss-making, as higher fuel costs weighed on profitability and are expected to keep full-year earnings broadly flat.
The airline posted revenue of $13.9 billion for the first quarter of 2026, up 10.8% year-on-year, marking the highest first-quarter revenue in its history. However, it reported a GAAP net loss of $382 million, or $0.58 per share, compared with an adjusted net loss of $267 million, or $0.40 per share.
Chief executive Robert Isom said the company expects revenue momentum to continue into the second quarter, with total revenue projected to rise between 13.5% and 16.5%. Adjusted earnings per share for the period are forecast in a range of a loss of $0.20 to break-even.
Despite the revenue growth, the airline said its full-year earnings outlook remains constrained by fuel costs. Based on current assumptions, including jet fuel prices of around $4.00 per gallon, the midpoint of its 2026 earnings guidance is expected to be approximately flat compared with 2025, even as fuel-related expenses increase by more than $4 billion.
Operating performance in the first quarter reflected broad-based revenue gains. Total unit revenue rose 7.6% year-on-year, with both domestic and international passenger unit revenue increasing by more than 10% in March. Atlantic passenger unit revenue grew 16.7% compared with the same period last year.
The company said demand remained strong, noting that it recorded the nine highest weekly revenue intake periods in its history during the quarter. Revenue was partially affected by winter storms, which reduced revenue by an estimated $320 million.
American also reported growth across key revenue streams. Managed corporate revenue increased 13% year-on-year, while premium revenue outperformed main cabin performance. Loyalty programme enrollments rose 25%, and spending on co-branded credit cards increased 9%.
On the balance sheet, American reduced total debt to $34.7 billion, its lowest level since mid-2015. The company ended the quarter with $10.8 billion in liquidity and more than $27 billion in unencumbered assets and borrowing capacity.
Looking ahead, the airline expects second-quarter capacity, measured in available seat miles, to increase between 4% and 6% year-on-year. Unit costs excluding fuel and certain items are projected to rise between 2% and 4%.
The company said its outlook assumes continued improvement in domestic revenue, growth in corporate travel demand and the ability to partially offset higher fuel costs through pricing. Full-year adjusted earnings per share are forecast in a range of a loss of $0.40 to a profit of $1.10.