Major U. S.

On April 23, 2026, at LaGuardia Airport in New York, refueling trucks were seen stopping by planes belonging to Southwest Airlines. This is a scene that has become increasingly common as major U. S. airlines face the financial impacts of rising jet fuel prices linked to the ongoing conflict in the Middle East. Despite reporting record first-quarter revenues and strong passenger demand, multiple carriers have been forced to revise or suspend their full-year guidance.

American Airlines, for example, reported an adjusted first-quarter loss of 40 cents per share on Thursday, which was slightly narrower than the 47-cent loss estimated by analysts. The airline also achieved a record revenue of 13. 9 billion U. S. dollars. However, it also noted a significant increase of 4 billion dollars in expenses related to higher fuel prices. As a result, American Airlines, along with other major carriers, have had to scale back their previous financial expectations for the year.

The airline’s CEO, Robert Isom, stated that despite the volatile operating environment, they still anticipate modest profitability for the year. This is assuming that the current forward fuel curve remains stable. Similarly, United Airlines has had to drastically reduce its 2026 earnings outlook due to the impact of rising fuel prices. The airline now expects to earn between 7 and 11 dollars per share on an adjusted basis, which is a sharp decrease from their previous forecast of 12 to 14 dollars per share in January.

United Airlines also anticipates fuel prices to average a staggering 4. 3 dollars per gallon in the second quarter. To mitigate these mounting costs, the airline has announced plans to reduce its scheduled flying capacity for the year. However, the CEO, Scott Kirby, maintains that the underlying demand for travel remains strong and that the airline is built to withstand disruptions. He also believes that as the situation persists, they will be able to keep most of the fare increases, even if jet fuel prices eventually decrease.

Southwest Airlines, too, has forecasted second-quarter earnings below analyst estimates and has held off on updating their full-year guidance for 2026. The airline’s President and CEO, Bob Jordan, emphasized that while the introduction of new product offerings drove double-digit unit revenue growth, it was achieved against the backdrop of significantly higher fuel costs. Similarly, Alaska Air has also pulled its full-year outlook due to mixed financial results.

Rob Suhs, vice president of global sales at Inventory Locator Service, explains that fuel is one of the biggest costs for airlines. When jet fuel prices rise, margins get squeezed, and this often results in higher fees for customers. Amid the financial turbulence in the sector, Isom has also spoken out against a potential merger with rival United Airlines, stating that it would be detrimental to consumers and anti-competitive. This follows reports that United Airlines’ CEO, Kirby, had proposed a merger to U. S.