American Airlines Group (NASDAQ:AAL) reported record-breaking top-line results for the first quarter of 2026, even as significantly higher energy costs weighed on the carrier's bottom line.
The Fort Worth, Texas-based airline generated $13.9 billion in revenue, the highest ever for a first quarter in the company's history.
Despite this milestone, the airline posted a GAAP net loss of $382 million, or $0.58 per share.
On an adjusted basis, American reported a loss of $267 million, or $0.40 per share.
The performance was heavily impacted by a sharp rise in operating expenses, specifically fuel.
The company cited a year-over-year increase of more than $4 billion in fuel expenses.
Looking ahead, management expects the full-year fuel impact to remain roughly flat compared to 2025 levels, based on the current forward fuel curve.
The airline’s balance sheet continues to show signs of structural improvement.
Total debt fell to $34.7 billion as of March 31, 2026, while the company maintained a healthy liquidity position of $10.8 billion.
Furthermore, American reported that its unencumbered assets and first-lien capacity now exceed $27 billion, providing a significant cushion for future capital needs and debt reduction strategies.
For the second quarter of 2026, American provided a growth-oriented outlook.
The carrier expects total revenue to increase between 13.5% and 16.5% on a capacity increase (Available Seat Miles) of 4% to 6%.
Cost per available seat mile (CASM) excluding fuel is projected to rise between 2% and 4%, with adjusted EPS for the second quarter estimated in a range of ($0.20) to $0.20.
For the full year, the company forecast adjusted EPS between ($0.40) and $1.10, reflecting the volatility of energy prices and the timing of labor contract implementations.