American Airlines paid an average of $3.85 a gallon for jet fuel in the third quarter, and its fuel expense rose $1.9 billion, or 67.5%, from a year earlier. The airline now expects to pay about $4.70 a gallon in the fourth quarter, which it says would add roughly $2.8 billion in fuel expense compared with the fourth quarter of 2025. The figures come from American’s earnings release of October 22.
That fuel bill landed in a quarter of record revenue. Total revenue was $16.3 billion, up 19.3% and above the high end of the company’s guidance. American still reported a GAAP net loss of $269 million, or $0.41 a share.
For passengers and shareholders, the question is where an extra $2.8 billion in fuel costs ends up. The release does not announce fare or fee changes. It does give a fourth-quarter forecast built on the forward fuel price curve as of October 19, a price American describes as nearly double the fourth quarter of 2025.
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Isom called it “the strongest year-over-year revenue growth” of his career, and the release says third-quarter revenue growth was the highest in company history outside the post-pandemic years. The pairing of record sales with a loss is the story of the quarter: demand is not the problem the release describes, fuel is.
A $4.70 forecast built on one day’s fuel curve
The $4.70 figure is a forecast, not a price already paid. A forward curve is the market’s price for fuel delivered later, and American took its curve as of October 19. A move in fuel markets after that date changes the result.
The third-quarter number is the realized one: $3.85 a gallon on average, with total fuel expense up 67.5%. The step from $3.85 to about $4.70 is what the airline is guiding to for the final three months of the year.
Fuel is also the reason American gives for slowing down next year. The release says that given elevated fuel prices, the airline expects network growth in 2027 to slow from 2026 levels. Chief Executive Robert Isom said the focus remains on “restoring profitability and building a stronger American for the long term.”
Record revenue, still a loss
Adjusted net loss was $182 million, or $0.28 a share, after excluding $87 million of after-tax net special items. That is $71 million worse than the third quarter of 2025, despite the fuel increase doing its damage in the same period.
Total unit revenue, the revenue earned per seat mile flown, rose 14.5%. Domestic passenger unit revenue rose 13.6% and international rose 16.4%. Costs excluding fuel and special items, known as CASM-ex, rose 3.0%, which the company calls the best unit cost performance among the network carriers.
Premium cabins grew fastest. Premium revenue rose 22.9% and Main Cabin revenue rose 19.5%, while premium passenger unit revenue rose 18.5% against 14.4% for Main Cabin. Managed corporate revenue rose 27.6%, the sixth straight quarter of double-digit growth.
American says premium products produce roughly half of ticket revenue on about 30% of seats, and retrofits of its narrowbody jets are expected to lift premium seating to 40% over time. The upsell rate from Basic Economy to Main Cabin rose 6 points. By region, Latin America revenue rose 21.1%, the Atlantic 14.5% and the Pacific 11.3%.
Loyalty numbers also climbed. AAdvantage enrollments rose 27.4% year over year, and card spend on American’s co-branded credit card with Citi grew nearly 10% in the quarter.
Managed corporate travel, meaning business trips booked through company accounts, is one reason the premium numbers look strong. Its 27.6% growth outpaced the 22.9% rise in overall premium revenue. That mix matters because premium seats carry the highest fares per seat.
Fourth-quarter guidance and the balance sheet
For the fourth quarter, American guided to capacity up 5.5% to 6.5%, total revenue up 19.5% to 22.5% and CASM-ex up 2.5% to 3.5%, all against the fourth quarter of 2025. It expects an adjusted loss of $0.50 to $1.10 a share for the quarter and $1.00 to $1.60 a share for the full year.
The airline ended the quarter with $11.8 billion of total available liquidity and more than $26 billion in unencumbered assets and first-lien capacity. It targets net debt of 3.0 times EBITDAR, a measure of earnings before interest, taxes, depreciation, amortization and rent, and says it remains committed to reducing debt and lowering interest expense.
Chief Financial Officer Devon May said American expects to lead the network carriers in the spread between year-over-year unit revenue growth and CASM-ex growth. The company also expects nearly $1 billion in annual run-rate savings and more than $900 million in working capital improvements by the end of 2026.
Passengers will see spending on the plane itself. On October 8, American said it would install Starlink Wi-Fi across its entire mainline fleet of more than 1,000 aircraft, and seatback screens will return to narrowbody jets on new deliveries starting in 2028. At Dallas-Fort Worth, the rebuilt flight schedule produced record passenger volumes and fewer misconnections and mishandled bags.
What the release does not settle is whether any of the added $2.8 billion shows up in ticket prices. American’s newsroom carries no fare or fee announcement alongside the results, and the fourth-quarter fuel price is a forecast that can still move.
Will a $4.70 fuel bill show up in a household budget?
American Airlines expects its fuel bill to rise about $2.8 billion in one quarter, and the release does not say who absorbs it. Energy costs move fast, and the programs that help with heating and utility bills reach only the households that apply for them.
The Benefits Checklist scans 11 benefit programs, including heating help, Extra Help for prescriptions and Medicare Savings Programs, with the 2026 income limits and a 50-state phone directory. It also comes with a printable application tracker for keeping each program’s status in one place.
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This article was produced with AI assistance and edited for accuracy against the sources linked above.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
