American Airlines said on Tuesday it expects full-year adjusted profit per share for 2026 to land in a range of $1.70 to $2.70, a forecast that sits above the average analyst estimate of $1.97 per share, based on data compiled by LSEG. The airline linked the stronger-than-expected outlook to two main trends: a rebound in corporate travel and sustained demand for higher-margin premium offerings.
Management said premium services - which deliver stronger margins per passenger - have become a greater focus as lower-income travelers cope with tighter household budgets amid a challenging macroeconomic environment. The company has increased its emphasis on premium upgrades to narrow the gap with competitors and capture a larger share of travelers willing to pay more for enhanced seating and service.
American has been accelerating upgrades to its premium product in an effort to catch up with Delta Air Lines and United Airlines. The carrier's strategy aims to leverage an apparent post-pandemic shift in consumer behavior that has bolstered demand for higher-end travel options.
Corporate travel also has shown signs of recovery, contributing to the more optimistic 2026 profit outlook. American reported total operating revenue in the fourth quarter rose 2.5% to about $14 billion, reflecting the combined impact of improved business travel and growth in premium passenger revenue.
The company framed its guidance amid a broader industry trend of leaning on affluent customers as price-sensitive segments of the market trim discretionary travel because of budget pressures. American's management indicated the mix shift toward premium passengers underpins its plan to widen profit margins in the coming year.
Investors and market participants will likely weigh the company's ability to execute on premium upgrades and sustain corporate travel gains as they evaluate the credibility of the 2026 earnings range.
Key metrics reiterated in the update:
- 2026 adjusted profit per share guidance: $1.70 to $2.70.
- Analysts' average estimate cited: $1.97 per share (LSEG).
- Fourth-quarter total operating revenue: up 2.5% to about $14 billion.