American Airlines reported a third-quarter net loss of $269 million compared to $114 million a year earlier|Quintin Soloviev|CC BY-SA 4.0

American Airlines forecasts deeper losses for 2026, projecting a fall between $1 and $1.60 per share amid surging jet fuel costs linked to the Iran war.

The airline reported a third-quarter net loss of $269 million, up from $114 million the same period last year.

Rising jet fuel costs have pushed airfares up more than 20% compared with 2025. According to Reuters, prices could reach $4.25 to $4.85 per gallon, up from under $4 in the third quarter.

Four major US carriers, Delta Air Lines, Southwest Airlines, and American Airlines, slashed their 2026 earnings forecasts, while United Airlines captured only 72% of its extra fuel expenses through revenue gains.

Industry experts expect airlines to balance higher ticket prices against the risk of weakening travel demand as they try to protect profit margins.