American Airlines Says Elevated Airfares Will Hold Even if Fuel Prices Drop
American Airlines' chief financial officer told the Financial Times that airfares will likely remain elevated even if jet fuel prices decline. The airline reported third-quarter fuel costs jumped 67.5 percent to 1.9 billion dollars compared to a year earlier. American projects deeper losses in 2026 and expects fuel to average 4.70 dollars per gallon in the fourth quarter, nearly double last year. The CFO said ticket prices haven't fully recovered since the pandemic and that this year marks the first time conditions allowed the industry to raise yields back to pre-pandemic levels. Airlines industry-wide are choosing to fly with fewer passengers at higher fares rather than lower prices to fill seats, as fuel remains their biggest variable cost after labor.
Key facts
- American Airlines' third-quarter fuel bill jumped 67.5 percent year-over-year to $1.9 billion at an average price of $3.85 per gallon
- American projects fourth-quarter fuel costs will average $4.70 per gallon, nearly double the year-earlier level
- American Airlines now forecasts a 2026 loss of $1 to $1.60 per share, down from July guidance of a loss of 65 cents to a profit of 65 cents
- Airfares rose 22.4 percent year-over-year as of September 2026, reaching 10-year holiday highs of $402 for Thanksgiving and $452 for Christmas
- CFO Devon May said ticket prices have not fully recovered in real terms since the COVID-19 pandemic and ideally should have increased in 2024
How different outlets framed it
Right-leaning coverage: Right-leaning outlets like Fox Business presented the airline perspective directly, covering fuel cost challenges and the business rationale for maintaining fares. Fox News also framed consumer frustration about high fares despite lower oil prices, questioning whether airlines are maintaining unnecessary pricing and tying it to reduced industry competition among four major carriers.
Limits of this briefing
No explicit left-leaning outlet coverage of this specific story was found in search results, limiting full political spectrum representation. Analysis relies primarily on business and mainstream news sources with centrist to right-leaning outlets.
Sources
- Fox Business: American Airlines says airfares will stay high despite fuel drop Right
- CNBC: American Airlines forecasts bigger loss in 2026 on fuel spike, plans to slow growth next year Centre
- Axios: Soaring jet fuel costs mean higher fares, fewer flights for travelers Centre
- Reuters / U.S. News: Analysis-US Airlines Favor Higher Fares Over Fuller Planes as Fuel Costs Squeeze Profits Centre
- Fox News: Consumer frustration over high airline fares grows Right