In recent weeks, we’ve seen the major US airlines report their Q2 2026 earnings. Obviously it’s an unusual time for the industry — while we’ve seen a huge spike in jet fuel prices, we’ve also seen airlines be able to charge higher fares (which they believe they can sustain).
In the United States, the story has largely been the same at most airlines — we’re seeing record revenue, while profits are down year-over-year. However, the extent to which profits are down differs massively. American is obviously the carrier among the “big three” that’s struggling the most, and it has just reported its financial results, including updated guidance. It’s all not very pretty.
In this post:
American “only” earns $71 million in its (historically) best quarter
When it comes to quarterly results, generally American’s best quarter is Q2, followed by Q4, followed by Q3, followed by Q1. That’s because Q2 covers spring and early summer travel (the peak summer travel period has moved forward), Q4 covers holiday travel, Q3 covers some summer and fall travel, and Q1 is… well, rough.
Obviously you’d expect some year-over-year changes at airlines, reflecting higher revenue but also higher costs. However, in general you’d hope that American is somewhat “tracking” its competitors, in terms of the percent changes year-over-year. In 2025, American’s annual profits plunged by 87%, and CEO Robert Isom promised significant upside.
So, how are things going now? American has just reported a net income of $71 million for Q2 2026, representing an 88% year-over-year decrease in net profit. As a point of comparison, Delta and United saw profits decrease by 25% and 17%, respectively.
Airline | Q2 2025 net income | Q2 2026 net income | Percent change |
|---|---|---|---|
American | $599 million | $71 million | −88.1% |
Delta | $2.13 billion | ~$1.60 billion | −24.9% |
United | $973 million | $805 million | −17.3% |
Now, to be thorough, let’s also compare Q1 2026 results compared to the previous year (keep in mind Q1 2025 was really rough due to the tariff situation, so all airlines saw a profit increase over that period).
Airline | Q1 2025 net income | Q1 2026 net income | Percent change |
|---|---|---|---|
American | -$473 million | -$382 million | +19.2% |
Delta | $240 million | $570 million | +137.5% |
United | $387 million | $973 million | +151.4% |
It seems unlikely American will make money in 2026
American lost $382 million in the first quarter, and earned $71 million in the second quarter, so for the first half of the year, we’re at a loss of $311 million, with the company’s historically best quarter behind it.
For context, in Q3 2025 American had a net income of -$114 million, and in Q4 2025 it had a net income of $99 million. At this point, it seems highly unlikely that American will turn a profit in 2026.
American has also updated its full year 2026 guidance, and now expects earnings per share of -$0.65 to $0.65. That contrasts to the previous guidance of -$0.40 to $1.10. And keep in mind American’s initial guidance for 2026 was $1.70 to $2.70.
For context, Delta has maintained the same guidance throughout, of $6.50 to $7.50 per share. Meanwhile United’s guidance has gone from $12 to $14 per share, to $9 to $11 per share.
But worry not, folks, American CEO Robert Isom is “excited about the remainder of 2026,” brags about how the carrier’s “performance reflects the strength of [its] commercial strategy,” and thanks the team “for their outstanding execution on [their] commercial and operational objectives during the quarter.”
The concept of American turning a profit this year seems like a pipe dream at this point, and must be based on assuming that oil prices crash, while the airline can maintain pricing power.
Bottom line
Admittedly no one expects that a turnaround will happen overnight, but American is continuing to lose ground to competitors when it comes to financial results, rather than narrowing the gap. The company had profits in Q2 decrease by 88%, and that’s historically American’s best quarter. Combined with the $382 million loss in the first quarter, it’s hard to imagine a world in which the airline will turn a profit this year.
As always, one can’t help but be reminded of how in 2017, former American CEO Doug Parker said that the airline would never lose money again, and even in a bad year, the airline should earn around $3 billion in profits. That sure didn’t age well, did it?
One can’t help but wonder how much longer the board will just sit on the sidelines as more and more ground is lost…
What do you make of American’s financial results, and how do you see this playing out?
My current business class airfare from LAX to JFK has doubled from a few months ago; however, there is still one flight attendent in first class on the Airbus 321T and one flight attendent in business class on the Airbus 321XLR. How can AA still be losing money?
Quick reminder: Isom's salary last year was $13.9M
How Isom still has a job is beyond me. Bob Crandall still around?
From their planes, loyalty program, financials to their FA and management, nothing about American Airlines has aged well.
How was Q1 2025 impacted by tariffs? Trump's "Liberation Day" announcement was early April
I really dont see how AA can turn it around. I think we are in the early stages of the next Pan Am... 5 years from now, AA won't be around; they will liquidate. They cant drive a premium revenue like DL/UA, they cant afford to invest to become premium. They have crushing debt at very high interest rates, they have a weak international network.
Does anyone know how revenue sharing for the TATL JV works in practice? It strikes me AA's key mistake alongside cutting costs too much is they have also allowed BA to operate all the premium TATL services they should have been operating themselves to instead focus on the domestic part which is not that profitable. Basically they said 'no, we don't want that' to the most profitable bit of DL and UA's business! Seems utterly mad as a strategy.
Ridiculous. They've been breaking even. They can keep going like this indefinitely and are no where near liquidation and aren't even moving in that direction.
This is a question of how long the shareholders will keep putting up with their stock under performing before they force a leadership change. In my opinion it should have been done a while ago but they're acting like Isom knows where the bodies are buried or something...
Assuming DFW and CLT are profitable fortress hubs for AA, how much of the financial drag comes from the capacity dump in ORD, where Scott Kirby (correctly?) stated AA was already losing money before adding even more unprofitable flying?
Idea: Launch nonstop US to Saudi Arabia AA nonstops. Fly empty if need be even. Instant profits!!!
How is it even possible for American to operate ~20% more daily flights than Delta but only have 4.5% of Delta's net income?
DL and UA have many flaws but they at least know how to run a viable business. What an embarrassment AA has become on every level.
Aye who cares, AA is the airline of the people.
At some point changes need to be made.....at the top.
LOL….i hope the oldest, most overweight flight attendants in the world enjoy that “profit sharing”
AA needs new leadership. Someone that can inspire and bring new ideas that are not customer downgrades dressed up as "innovation."
Hopefully airlines in the US will never venture down the ULCC road again.
"But worry not, folks..." *gulp*
1. Ben thank you so much for presenting these numbers in tables, i really appreciate it, sincerely
2. Delta
3. Delta
4. Delta