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October 26, 2026

American Airlines will reduce capacity if fuel costs rise

American Airlines may need to reconsider its growth strategy into 2027 due to persistently high fuel costs, according to CEO Robert Isom. Speaking at the Morgan Stanley Laguna investor conference, Isom indicated that the airline might have to curtail its planned capacity expansion if fuel prices do not decrease in the long run.

Expanding on the potential for adjustments, American Airlines’ Chief Financial Officer Devon May confirmed at the same conference that the airline is prepared to make changes to its capacity plans, although specific strategies were not detailed. The current high fuel costs pose a significant factor impacting the airline’s future planning and operational adjustments.

Reporting based on coverage first published by skift.com.