American Airlines CEO Robert Isom cautioned investors on Sept. 16 that rising fuel prices could force the carrier to pull back on some routes if costs continue climbing.
Speaking at an investment conference, Isom said every one-cent increase in fuel translates to $10 million in additional expenses for the airline. He expects higher fuel prices to add $1 billion to American’s costs in the fourth quarter alone.
West Texas Intermediate crude has risen 21.5% over the past month, reaching $102.59 per barrel. Along with labor, jet fuel is one of the two largest cost items on an airline’s income statement, and that kind of move in crude hits the bottom line fast.
American has leaned on stronger airfares and premium cabin revenue — including first class — to absorb part of the increase. Isom said the carrier remains confident in its third-quarter revenue growth forecast of 16% to 19%. But he was direct that those offsets may not be sufficient going forward.
If fuel stays elevated, operational adjustments would likely mean reducing or canceling flights on less profitable routes while protecting the carrier’s highest-margin markets. For crew, that translates to potential schedule changes, reduced flying opportunities, and possible base-level impact depending on which routes get cut.
Update (September 18, 2026 at 8:38 PM ET)
- American plans capacity adjustments in Q3 and Q4 of 2026.
- American expects slower growth in 2027.
- Jet fuel prices are averaging $4.43 per gallon.
- American has retrofitted 777-300ERs with Flagship Suites.
- American is returning seatback screens to aircraft.
- American plans a targeted 40% increase in narrowbody premium seat share.
- American plans to install Starlink on approximately 500 narrowbodies.
- Premium seats represent about 30% of American’s capacity but roughly 50% of its revenue.
- CFO Devon May expressed confidence in American’s controllable performance and projected an industry-leading gap between unit revenue and controllable costs.
- American has been flying more capacity than rivals Delta and United.
