American Airlines has significantly cut its profit forecast for 2026, now estimating a loss at the lower end of the range due to soaring jet fuel costs, which are expected to exceed $4 billion this year. The airline's fuel expenses have surged as prices remain high at about $4 per gallon, nearly doubling since the onset of the Iran conflict. This situation has pressured airlines, which typically see jet fuel costs account for about a quarter of their operating expenses. Despite these challenges, American Airlines reported a smaller-than-expected loss of 40 cents per share for the first quarter, compared to an anticipated 47 cents. The company is optimistic about the second quarter, expecting unit revenue to grow by more than 10% as demand remains resilient. However, it has tempered its growth expectations, projecting second-quarter capacity to be about one percentage point below initial plans. The airline aims to recover approximately 75% to 90% of the increased fuel costs by the end of the year, depending on price stability.