{"id":7387,"date":"2026-10-23T16:22:11","date_gmt":"2026-10-23T16:22:11","guid":{"rendered":"https:\/\/www.vaultinsider.top\/?p=7387"},"modified":"2026-10-23T16:22:11","modified_gmt":"2026-10-23T16:22:11","slug":"american-airlines-says-airfares-will-stay-high-despite-fuel-drop","status":"publish","type":"post","link":"https:\/\/www.vaultinsider.top\/?p=7387","title":{"rendered":"American Airlines says airfares will stay high despite fuel drop"},"content":{"rendered":"

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Gen Z travelers are cutting back on dining, haircuts and everyday expenses to afford trips as homeownership and other traditional milestones feel increasingly out of reach.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

American Airlines issued a warning that airfares are likely to remain elevated even if there’s a decline in oil prices due to losses the carrier suffered earlier in the year amid surging fuel costs.<\/p>\n

Devon May, CFO of American Airlines, told the Financial Times, “If fuel comes down, I think airfares probably stay largely where they’re at right now.”<\/p>\n

“If fuel prices go up, we need to generate higher yield, we need to generate higher fares to offset that higher fuel price,” May said.<\/p>\n

American Airlines on Thursday released its earnings for the third quarter which included deeper losses in 2026, updating its forecast to reflect anticipated losses between $1 and $1.60 a share on an adjusted basis this year. Its July forecast ranged between a loss of 65 cents and a profit of 65 cents.<\/p>\n

MAJOR AIRLINES CUT FLIGHTS AS HIGHER JET FUEL PRICES HIT CARRIERS<\/strong><\/p>\n

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\"American<\/source><\/source><\/source><\/source><\/picture><\/div>\n
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American Airlines projected deeper losses in 2026 due to the surge in fuel costs.<\/span> (Kevin Carter\/Getty Images)<\/span><\/p>\n<\/div>\n<\/div>\n

May told the FT that airlines’ ticket prices hadn’t fully recovered in real terms since the disruptions caused by the COVID-19 pandemic, saying that the price hikes “ideally should have happened back in 2024, but the industry found itself in an oversupply environment.”<\/p>\n

“This was the first year that everything came together in a way that we were able to push yields back up to where they were seven years ago in real terms,” May told the outlet.<\/p>\n

AMERICAN AIRLINES ADDS $1,000 TRUMP ACCOUNT MATCH FOR WORKERS’ CHILDREN<\/strong><\/p>\n

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\"American<\/source><\/source><\/source><\/source><\/picture><\/div>\n
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American Airlines said it expects higher fuel costs to persist into the fourth quarter.<\/span> (Daniel Slim\/AFP via Getty Images)<\/span><\/p>\n<\/div>\n<\/div>\n

The company reported a 19% year-over-year increase in third-quarter revenue, which was above the high end of its previous guidance range and was the highest in company history when excluding the years following the pandemic.<\/p>\n

However, fuel expenses in the third quarter surged 67.5% compared with the same period a year ago, which translated to $1.9 billion in higher fuel costs based on an average price of $3.85 a gallon.<\/p>\n

American also forecast higher fuel prices will continue into the company’s fourth quarter, with the carrier expecting to face an average fuel price of about $4.70 a gallon \u2014 a figure that would nearly double the price in the fourth quarter of 2025 and increase fuel expenses by $2.8 billion year over year.<\/p>\n

AMERICAN AIRLINES BETS BIG ON INTERNATIONAL FLIGHTS WITH 7 NEW ROUTES<\/strong><\/p>\n\n\n\n\n\n
Ticker<\/th>\nSecurity<\/th>\nLast<\/th>\nChange<\/th>\nChange %<\/th>\n<\/tr>\n<\/thead>\n
AAL<\/td>\nNO DATA AVAILABLE<\/td>\n–<\/td>\n–<\/td>\n\n –\n <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Due to the elevated fuel prices, American said that it expects its network growth to slow in 2027 when compared with 2026 levels.<\/p>\n

Higher fuel prices have caused airfares to surge, with the most recent data from the Bureau of Labor Statistics showing that airline fares were up 22.4% compared with a year ago in September.<\/p>\n

CLICK HERE TO DOWNLOAD THE FOX NEWS APP<\/strong><\/p>\n<\/div>\n

#American #Airlines #airfares #stay #high #fuel #drop<\/p>\n","protected":false},"excerpt":{"rendered":"

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