10-Q · July 23, 2026
American Airlines delivered Q2 revenue of $16.735 billion, up 16.3% year over year and 20.3% sequentially, while GAAP EPS of $0.11 improved from a Q1 loss and exceeded the $0.04 consensus estimate. Strong pricing and…
Earnings analysis · 10-Q
AAL earnings analysis
Filed October 22, 2026 · Our reading of the company's report
The latest report
American Airlines delivered $16.335 billion of third-quarter revenue but reported a $0.41 diluted loss per share, indicating strong demand did not translate into earnings. The 10-Q provides no new material risk-factor…
Read full summary
American Airlines delivered $16.335 billion of third-quarter revenue but reported a $0.41 diluted loss per share, indicating strong demand did not translate into earnings. The 10-Q provides no new material risk-factor changes and confirms effective disclosure controls, but highlights significant unhedged fuel exposure and interest-rate sensitivity. The filing excerpt does not provide new quantitative guidance; outlook figures were provided separately in the October 22 earnings release.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.41
What stood out
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Record revenue, but EPS missed estimates
Third-quarter revenue was $16.335 billion, while diluted EPS was a loss of $0.41. Revenue exceeded the provided $16.211 billion consensus estimate by approximately $124 million, but profitability was weaker than expected versus the $0.35 loss estimate.
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Disclosure controls remained effective
Management concluded that AAG’s and American’s disclosure controls were effective at the reasonable-assurance level as of September 30, 2026.
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No material control changes
The company reported no changes during the quarter ended September 30, 2026 that materially affected, or were reasonably likely to materially affect, internal control over financial reporting.
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Fuel exposure is clearly quantified
The company had no fuel-hedging contracts outstanding as of September 30, 2026 and estimated that a $0.01-per-gallon increase in fuel prices would raise 2026 annual fuel expense by approximately $45 million.
What to watch
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Unhedged fuel exposure
AAG had no fuel-hedging contracts outstanding as of September 30, 2026 and stated that it would remain fully exposed to fuel-price fluctuations. Each $0.01-per-gallon increase in fuel prices is estimated to increase annual 2026 fuel expense by approximately $45 million.
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Interest-rate sensitivity
Based on September 30, 2026 balances, a 100-basis-point increase in annual interest rates would increase interest expense on variable-rate debt by approximately $150 million, partly offset by approximately $80 million of additional interest income.
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No formal risk-factor update
The 10-Q states that there have been no material changes to the risk factors disclosed in the 2025 Form 10-K. The company nevertheless remains exposed to foreign-currency volatility across the euro, Canadian dollar, British pound and Latin American currencies, without a current foreign-currency hedge program.
Management's outlook
The 10-Q excerpt does not provide a quantitative outlook or a comparison with prior guidance. The accompanying October 22, 2026 earnings release provided fourth-quarter adjusted loss per diluted share guidance of ($1.10) to ($0.50), full-year adjusted loss guidance of ($1.60) to ($1.00), and fourth-quarter revenue growth of 19.5% to 22.5%.
Earlier filings 2
10-Q · April 23, 2026
American (AAG/AAL) reported record Q1 revenue of $13.912 billion, up 10.8% year-over-year, with passenger revenue of $12.495 billion (+9.7%). Operating loss narrowed to $41 million (vs. $270 million loss in Q1 2025) and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.