AAL Q1 2026 Earnings

Call Details

• Call Title: American Airlines Q1 2026 Earnings Call
• Date: April 23, 2026 at 12:30 PM UTC
• Management Team:
  • Neil Russell (Vice President, Investor Relations)
  • Robert Isom (Chief Executive Officer)
  • Devin May (Chief Financial Officer)
  • Nat Pieper (Chief Commercial Officer)

Call Summary

Financial Performance

• Excluding net special items, the company reported an adjusted loss per diluted share of $0.40 in Q1 2026.
• Total revenue grew 10.8% year over year in Q1 2026, and the company recorded nine highest revenue intake weeks in its history during the quarter.
• Pre-tax margin improved approximately two points year over year in Q1 2026 on an adjusted basis.
• Domestic PRASM increased 6.6% year over year in the quarter, Atlantic unit revenue was up 16.7% year over year with London up 25%, and Pacific unit revenue rose 7.8% year over year.
• Unit cost excluding net special items, fuel, and profit sharing increased 5.2% year over year in Q1 2026, and CASM ex was pressured roughly two points by winter storms that lowered capacity.
• Managed corporate revenue increased 13% year over year, and co-branded card spend increased 9% year over year while Advantage enrollments rose 25% year over year.
• The quarter included identifiable one-offs, including a $320M revenue impact from winter storms and a $400M incremental fuel expense versus the forward curve in January.

Guidance

• Second quarter revenue is expected to be up between 13.5% and 16.5% year over year, with management summarizing Q2 revenue growth at approximately 15%.
• Second quarter domestic unit revenue is expected to grow more than 10% year over year based on current bookings and trends.
• Second quarter CASM ex is anticipated to be up 2% to 4% year over year, reflecting close-in capacity reductions and storm effects.
• The company expects a fuel price of approximately $4.00 per gallon in Q2 based on the April 20th forward curve.
• Second quarter adjusted earnings per diluted share are guided between a loss of $0.20 and income of $0.20, and full year guidance midpoint is $0.35 per share, approximately flat to 2025.
• The company assumes fuel recapture rates of roughly 40% to 50% in Q2, 75% to 85% in Q3, and into the 90s in Q4 if fuel remains elevated.
• Planned second quarter capacity is about one point below initial plans due to suspended flying to Tel Aviv and Doha and reductions in Chicago and other marginal flying.