American Airlines Group Inc is keeping its full-year profit outlook intact despite the headwind of rising fuel prices, Chief Executive Officer Robert Isom said on Wednesday at a Bernstein investor conference.
Isom said the airline has seen revenue gains and stronger premium demand that, together with an uptick in corporate travel, have helped counterbalance higher oil costs. He described travel demand as following a K-shaped trajectory - with higher-income travelers recovering faster than middle- and lower-income customers - while noting that travel activity is nevertheless increasing across all income groups.
The carrier is roughly 80% booked for the second quarter, according to Isom. He added that corporate travel is up 13% year over year and that leisure demand is also showing strength as the company heads into the quarter.
Shares of the company rose about 2% in morning trading on Wednesday.
Last month the airline trimmed its 2026 profit forecast in response to higher jet fuel costs. Management said it expects its fuel bill to increase by more than $4 billion this year. As a result, the company now projects 2026 results in a range from a loss of $0.40 per share to a profit of $1.10 per share, down from a previous forecast that ranged from a profit of $1.70 to $2.70 per share.
The comments at the investor conference emphasize the tension between revenue-side improvements and sharply higher operating costs tied to fuel. While strong premium and corporate demand are providing offsetting revenue, management has already adjusted forward profit expectations to reflect the larger fuel bill.
For investors and market participants, the near-term outlook will likely hinge on how sustained the company’s current booking trends remain and whether fuel costs stabilize relative to the assumptions baked into the revised 2026 guidance.