American Airlines sees resilient demand cushioning fuel-price hit
There is ‘no doubt’ demand has a K-shaped pattern, says CEO Robert Isom
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[CHICAGO] American Airlines is sticking with its full-year profit outlook despite a sharp jump in fuel prices, CEO Robert Isom said at a Bernstein investor conference on Wednesday (May 27).
This comes as stronger revenue, premium demand and corporate travel help cushion the hit from rising oil costs.
Isom said that there was “no doubt” demand had a K-shaped pattern, with higher-income travellers outpacing middle-income and lower-income customers.
Still, he said that travel was growing across income groups, with American about 80 per cent booked for the second quarter, corporate travel up 13 per cent year on year and leisure demand “incredibly” strong.
American Airlines’ shares were up 2 per cent in morning trade.
The carrier last month cut its 2026 profit forecast as jet fuel costs surged, saying it expected its fuel bill to rise by more than US$4 billion this year.
It forecast 2026 results ranging from a loss of US$0.40 a share to a profit of US$1.10 a share, down from its prior forecast for a profit of US$1.70 to US$2.70 a share.
Isom said that the airline expected Q2 revenue to rise 15 per cent from a year earlier on about 5 per cent capacity growth, implying roughly 10 per cent unit revenue growth. REUTERS
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