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.
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?
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