American Airlines Group (NASDAQ: AAL) reported second-quarter 2026 total revenue of $16.7 billion, a 16.3% increase year over year, according to a company press release. The figure marks the airline's highest quarterly revenue on record.

GAAP net income for the quarter was $71 million, or $0.11 per diluted share, down sharply from $599 million, or $0.91 per diluted share, in the second quarter of 2025. Adjusted net income was $99 million, or $0.15 per diluted share.

Fuel expense rose 83% year over year to $4.9 billion, an increase of more than $2.2 billion. The average fuel price was $4.05 per gallon in the quarter, compared with $2.29 a year earlier. The company said higher fares offset nearly half of the fuel cost increase.

Passenger unit revenue rose 13.4% in premium cabins and 8.8% in the main cabin compared to the second quarter of 2025. Managed corporate revenue grew 26% year over year. Domestic passenger unit revenue increased 10.6%, while Atlantic, Pacific, and Latin America entities posted gains of 8.9%, 15.1%, and 6.6%, respectively.

Capacity, measured in available seat miles, grew 5.4% year over year. The company ended the quarter with $11.3 billion in total available liquidity.

For the third quarter, American expects total revenue growth of 16% to 19% year over year, with an average fuel price of approximately $3.75 per gallon based on the forward curve as of July 21. Third-quarter fuel expense is projected to be up $1.7 billion year over year. The company now expects full-year adjusted earnings (loss) per diluted share of ($0.65) to $0.65, a range that reflects continued fuel cost pressure.

CEO Robert Isom said revenue growth exceeded initial expectations for the quarter. CFO Devon May attributed cost performance to investments in procurement and technology made over several years.