Oct 22, 2026 earnings call — Revenue growth, fuel spike hurt results
Q3 revenue rose 19.3% to $16.3 billion, but higher fuel added $1.9 billion and drove an adjusted loss of $0.28 per share.
Revenue $16.3B (est $16.2B) · EPS $-0.28 (est $-0.36)
Key quotes
"We said we would elevate the customer experience, and we are."
"We said we would rebuild our network, and we have. We grew in Miami and Phoenix and are investing in Charlotte."
"Premium unit revenue increased 18.5% year over year. Outperforming main cabin unit revenue by more than 4 points."
Analyst Q&A 14
2027 capacity and costs
Q (Catherine O'Brien · Goldman Sachs): Analyst asked how American will slow capacity growth in 2027 and what offsets will be used, and asked for any percent guidance on the slowdown. Follow-up asked how slower growth will affect CASMx trends and the relation between capacity growth and unit cost.
A: Management said 2026 growth rebuilt the network and that for 2027 they will match capacity to demand, using aircraft utilization reductions, reconfiguration lines, and Starlink installs as levers while considering fuel price and GDP. They also said lower growth will put upward pressure on unit cost, but they will continue to drive efficiencies and expect CASMx to move with growth.
"As we take a look at next year, yes, we are we are taking into account the high price of fuel." — Robert D. Isom Jr.
international expansion and margins
Q (Jamie Baker · JPMorgan): Analyst asked whether pushing into international Pacific routes (cut during COVID) will initially widen the margin gap and what is different this time.
A: Management did not directly give financial offsets here. Nathaniel said the regional fleet already has many premium seats and they have considered different layouts, and he said they like where the regional premium footprint sits today.
regional premium seating
Q (Jamie Baker · JPMorgan): Analyst asked about using lower density regional jets (like E170) to add premium seats and whether that is ruled out.
A: Nathaniel said the current regional fleet already has strong premium presence across E175, CRJ700/900 and E170, they have looked at some LOPAs to add premium but largely like the current setup.
"The E175s have 12 premium seats." — Nathaniel Pieper
RASM drivers and 2027 plan
Q (Ravi Shanker · Morgan Stanley): Analyst wanted how RASM will behave versus load factor in 2027 and any idiosyncratic RASM drivers beyond fuel pass-through; also asked if lower growth is only due to high fuel.
A: Management said they will provide more on 2027 in Q1, that their bias is lower capacity, and they are focused on improving unit revenue via four pillars: network, customer experience, premium revenue, and loyalty. They added matching capacity to demand is ongoing and lower growth reflects lapping prior competitive-driven network growth, not only fuel.
"And we believe that there is significant upside there." — Robert D. Isom Jr.
fuel recapture and Q4 revenue
Q (Atul Maheshwari · UBS): Analyst asked what is needed to reach 100% fuel recapture and whether capacity management is the main lever; also asked for Q4 revenue expectations by region.
A: Robert said rising fares show there is value to be captured and monetizing product investments and premium leisure demand are keys rather than just price moves; Nathaniel said Q4 revenue is expected to increase sequentially with international unit revenue exceeding domestic again.
"From an entity perspective, we see international performance continuing to be terrific, and we see international unit revenue to exceed domestic again in Q4 as it did in Q3." — Nathaniel Pieper
corporate demand and fleet mix
Q (Thomas Fitzgerald · TD Cowen): Analyst asked about corporate demand, share in indirect channels, and outlook for 2027; also asked about mainline vs regional fleet mix and widebody order thinking.
A: Nathaniel said corporate sales were strong with managed corporate up 28%, TMC up 27%, and AAdvantage Business up 46%, and expects continued strength tied to product investments. Devon said they are close on a widebody campaign to replace 777-200s and that regional economics remain attractive so overall regional fleet size likely won’t change much though aircraft types will evolve.
"Managed corporate is up 28%." — Nathaniel Pieper
timing and geography of capacity cuts
Q (Duane Pfennigwerth · Evercore): Analyst asked when reductions in growth will show up and which geographies need the cuts most; also asked about seasonal shaping of capacity and any structural limits at American.
A: Robert said fourth-quarter growth mostly reflects prior investments and some reductions will appear in 2027; he also said they are working to smooth the schedule to appeal to higher yielding customers and reduce peakiness, noting October has been strong.
"But beyond that, we have more or less lapped growth that we have focused on for competitive purposes." — Robert D. Isom Jr.
yield vs load factor and capacity relation
Q (Scott Group · Wolfe): Analyst asked why Q3 showed strong yield but big load decline and whether the relationship between capacity and RASM is changing or just temporary; asked if capacity could be down next year.
A: Nathaniel said they actively prioritized yield over load factor in Q3 to rebuild hubs and chase yield and will continue to prioritize yield given strong premium performance; Robert added growth will decelerate in 2027 and they will align capacity with demand while driving premium products.
"Listen, we actively, in the third quarter, prioritized yield over load factor." — Nathaniel Pieper
M&A and partnerships
Q (John Godyn · Citi): Analyst asked whether American might take a proactive view on M&A and what role partnerships play; also asked about opportunities from struggling LCCs like Spirit.
A: Robert said American focuses on creative partnerships and joint businesses with carriers like JAL, Qantas, IAG and Qatar and will be opportunistic; on Spirit he said they looked at assets in the liquidation but were not successful and will keep watching other opportunities.
"We will keep our eyes open on any others that may have issues." — Robert D. Isom Jr.
CapEx and commercial priorities
Q (Andrew Didora · BofA): Analyst asked whether CapEx plans change given fuel and if any areas can be cut to preserve free cash flow; also asked commercial priorities and network focus areas.
A: Devon said they have no massive CapEx replacement needs, expect $4.0 to $4.5 billion this year and maybe slightly higher next year but still below peers, and investments support revenue initiatives with only trimming at the edges. Nathaniel said he is pleased with progress on the four priorities and expects initiatives to deliver revenue and margin expansion.
"We have a guide out there for this year with to $4.5 billion of total capital expenditures." — Devon May (CFO)
balance sheet and Alaska JV
Q (David Vernon · Bernstein): Analyst asked if the board is discussing recapitalization alternatives to repair the balance sheet given fuel pressures, and asked about the rationale for deepening the Alaska JV.
A: Devon said they have reduced total debt from $54 billion to around $36 billion and that earnings improvement is the main path to better credit metrics, so they focus on margins and earning-driven free cash. Robert said Alaska complements American, the West Coast International Alliance is working, and they plan to bring Alaska into the joint businesses over time.
"We have reduced that to around $36 billion today." — Devon May (CFO)
customer experience ROI and Wi-Fi rollout
Q (Jack Ewell · Jefferies (asked on behalf)): Analyst asked what return thresholds guide customer experience investments and why Starlink rollout was expanded to the whole fleet.
A: Devon said these investments don't have direct returns but support commercial initiatives and expected uplifts in yield or market share; Robert said connectivity is table stakes, they will install Starlink across the narrow body and wide body fleet over the next year or so, and customers value it.
"We are gonna move as fast as we can to get Starlink installed on our entire fleet of narrow bodies wide body aircraft over the next year or so." — Robert D. Isom Jr.
fees and denied boarding changes
Q (Alison Sider · Wall Street Journal): Media asked about potential for more fees like bag fees and about changes to involuntary denied boarding.
A: Robert said they don't discuss specific pricing or fees and emphasized offering value across fare types, noting they do not charge $75 for a carry-on like some competitors; Nathaniel said focusing on improving involuntary denied boarding was a customer-experience decision and teammates and customers feel better about the change.
"We do not charge, you know, $75 for a carry-on bag." — Robert D. Isom Jr.
loads, profitability, and widebody order
Q (Leslie Josephs · CNBC): Analyst asked at what point lower loads worry the company and whether they can be profitable in 2027 given fuel; follow-up asked about the widebody order split.
A: Nathaniel said they are prioritizing yield over load factor and will continue to do so; Robert said they can be profitable next year, fuel increased expense by $7 billion this year and as fuel stabilizes and revenue initiatives take hold they expect profitability, and he declined to comment on widebody supplier split beyond saying the campaign is going well.
"we have had fuel expense now grow $7 billion over the course of the year." — Robert D. Isom Jr.