American Airlines Group Inc.

American reported second-quarter total revenue up 16.3% year over year, with record quarterly revenue. It did not give Q2 EPS, gross margin, or detailed net income figures on the call, but said fuel expense increased by over $2.2 billion, or 83% year over year, and that the company recovered nearly half of that increase through revenue. For Q3, management guided to revenue growth of 16% to 19% year over year, capacity up 3% to 5%, CASMx up 2.5% to 4.5%, and adjusted loss per diluted share of $0.70 to $0.10. For full-year 2026, guidance was lowered to a loss of $0.65 to a profit of $0.65 per diluted share; management also said it still expects positive free cash flow at the midpoint of the current guide, about $4 billion of capex, and year-end liquidity of $11.3 billion. Devon May added that third-quarter fuel expense is expected to rise $1.7 billion year over year at an average fuel price of about $3.75 per gallon, and that the company has raised roughly $1.3 billion in incremental financing this quarter.

Robert Isom framed the quarter as proof that American’s multi-year commercial strategy is working, emphasizing the four pillars of customer experience, global network, premium revenue, and loyalty. His tone was confident and upbeat, but he repeatedly acknowledged fuel volatility as the main near-term swing factor. He said American is making network and capacity adjustments as needed, but remains focused on revenue growth, margin expansion over time, and stronger shareholder value once fuel normalizes.

Devon May focused on the financial impact of fuel and the company’s response. He said fuel expense rose more than $2.2 billion in Q2, and that third-quarter expected fuel costs have moved up by more than $700 million since early July, with the full-year impact now nearly $1.6 billion higher since then. He also said American expects $4 billion of capex this year, about $1.3 billion of incremental financings in Q2 to bolster liquidity, $11.3 billion of liquidity at quarter-end, positive free cash flow at the midpoint of guidance, and lower net debt by year-end. He reiterated longer-term balance sheet targets of debt below $35 billion, net debt well inside $30 billion, and net debt/EBITDA below 3 turns.

Analysts pressed management on why American is not cutting capacity more aggressively given fuel volatility and its margin gap versus peers. Isom said the company is making diligent capacity adjustments, has already reduced Q3 capacity, and is reviewing Q4, stressing that American will react quickly if conditions warrant. Other questions focused on CASM, premium-seat strategy, loyalty/cobranded card spend, hub optimization, and balance-sheet targets; management replied that premium and corporate demand remain strong, AAdvantage enrollments are growing rapidly, and the Citi card partnership is still early but intended to close the gap with peers.