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High fuel costs threaten US airline profits
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Shafaqna English | International Shia News & Fatwas
Shafaqna English- American Airlines trimmed its earnings forecast for 2026 on Thursday(23 Jul 2026), simultaneously cautioning investors that a fresh spike in jet fuel expenses could drive its full-year performance to a near-breakeven position.
This warning stands in contrast to the carrier’s otherwise robust fundamentals, which include record-breaking revenue streams, elevated average fares, and a highly resilient travel market that shows no signs of softening.
A Reuters calculation indicates that the combined fuel bills for five major U.S. carriers—Delta, United, American, Southwest, and Alaska—have surged by almost $8 billion when measured against the equivalent period in the preceding year.
In contrast, the comparable increase for the first quarter of the current year stood at roughly $1.2 billion, illustrating the rapidly escalating cost pressures that are now confronting the airline industry.
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