American Airlines projects revenue growth for 2026, misses earnings estimates for fourth quarter

Core Viewpoint - American Airlines is focusing on premium offerings to enhance profitability and expects significant improvements in earnings and revenue by 2026 [1][2]. Group 1: Financial Projections - The airline anticipates nearly $2 improvement in adjusted earnings per share at the midpoint over the previous year [1]. - American expects a revenue increase of 7% to 10% in the first quarter of 2026 compared to 2025 [1]. Group 2: Performance and Market Position - In the fourth quarter, American Airlines reported adjusted earnings per share of 16 cents, surpassing the expected loss of 34 cents [4]. - The airline's revenue for the fourth quarter was $14 billion, slightly below the expected $14.03 billion [4]. - CEO Robert Isom stated that American Airlines is positioned for significant upside in 2026 and beyond, highlighting the investments made in customer experience, network, fleet, partnerships, and loyalty programs [2]. Group 3: Competitive Landscape - American Airlines is revamping its fleet, lounges, and food offerings to attract high-spending customers, but rivals Delta Air Lines and United Airlines currently dominate the market, capturing almost all industry profits [3]. - The government shutdown negatively impacted American's fourth quarter revenue by approximately $325 million [2].