American Airlines says soaring price of jet fuel will cost it $4bn this year

"The soaring price of jet fuel will cost American Airlines another $4bn this year, wiping out forecast profits. The airline said the fuel crisis from the US-Israel war on Iran could push it into losses during 2026."

"While many European airlines have hedged their fuel, locking in a purchase price for months or years ahead, American carriers have been exposed to the price rises."

"American Airlines exceeded forecasts and reported record revenues during much of the first quarter of 2026, totalling $13.9bn. However, faltering consumer confidence may mean airlines struggle to pass on widespread higher fares."

"Airlines in the UK have said they have six weeks visibility of supplies, but the closure of the strait of Hormuz and the Iranian and US blockades has placed the longer-term flow of fuel in jeopardy."

American Airlines anticipates a $4bn loss this year due to skyrocketing jet fuel prices, primarily influenced by the US-Israel conflict. The airline's profit forecast of $1.8bn has been significantly affected, with potential losses projected for 2026. While European airlines have hedged fuel prices, American carriers remain vulnerable. To mitigate costs, American Airlines plans to increase fares and expects revenue growth. Global airlines are also grappling with rising fuel prices and consumer confidence issues, complicating fare adjustments. Concerns over fuel availability have prompted UK airlines to seek government intervention.

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