American Airlines Loss Narrows, Q2 Uncertain

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American Airlines has announced its 1Q26 results, ending the first quarter with a net loss, with the latter part of the quarter volatile due to the conflict in Iran. The airline expects to be potentially loss-making in Q2 2026 as well.

On April 23, 2026, American Airlines confirmed that it ended Q1 2026 with a net loss of $382 million, an improvement compared to Q1 2025’s net loss of $473 million. The airline’s revenue was $13.9 billion, a 10.8% year-on-year (YoY) improvement, while operating expenses, which rose 8.8% YoY, were slightly higher at $13.9 billion.

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The airline noted that it had lost $320 million in revenue from winter storms in the US during the early weeks of the quarter, including Winter Storm Fern in January.

As a result, its quarterly operating loss was $41 million, an 85% YoY improvement compared to Q1 2025’s operating loss of $270 million.

American Airlines’ capacity, measured in available seat miles (ASM), and demand, measured in revenue passenger miles (RPM), improved by 3.9% and 3% YoY, respectively. Average load factors went up by 0.7 percentage points to 81.3%, while passenger revenue per ASM (PRASM) and total revenue per ASM (TRASM) improved by 6.5% and 7.6% YoY, respectively.

Barring Latin America, PRAM was up in every region where American Airlines operates, including on domestic flights within the United States.

Cost per ASM (CASM) went up by 5.6%, while CASM excluding fuel and special items (CASM-ex) was up 5.2% YoY.

Robert Isom, the Chief Executive Officer (CEO) of American Airlines, highlighted that the company had its highest Q1 revenue during this period, and that it is “on track for another record in the second quarter.”

“This revenue momentum is the result of focus on our four commercial priorities – elevating the customer experience, growing our global network, driving premium revenue, and leading in loyalty.”

According to Isom, despite the uncertain operating environment, the airline’s pre-tax margin improved by nearly 2% YoY, and the carrier should be modestly profitable by year-end.

“Demand for our product is growing, and our customer satisfaction scores are improving. We have built a strong foundation to deliver value for our customers, team members, and shareholders in 2026 and beyond.”

Looking ahead, American Airlines expects its year-end adjusted earnings per diluted share to be between -$0.40 and $1.10, and in Q2 2026, earnings per share should range between -$0.20 and $0.20.

Q2 2026 capacity should increase from 4% to 6% YoY, while total revenue should be up from 13.5% to 16.5% compared to Q2 2025.

In comparison, Delta Air Lines ended Q1 2026 with a non-adjusted net loss of $289 million – it had a net profit of $240 million in Q1 2025 – while United Airlines’ Q1 2026 non-adjusted net profit was $699 million, an improvement of 80.4% YoY.

However, Delta Air Lines and United Airlines commanded a significant unit revenue premium over American Airlines during the quarter. Adjusted for a 1,000-mile stage length, with Delta Air Lines’ average Q1 2026 stage length being calculated using Cirium’s Diio Mi data, American Airlines’ adjusted PRASM is 7.7% lower than Delta Air Lines’ and 27.8% lower than United Airlines’, respectively.

United Airlines’ stage length-adjusted PRASM was also 18.6% higher than Delta Air Lines’ during the quarter.