American Airlines’ Q1 jet fuel costs rise $341 million

American Airlines reported a $341 million increase in jet fuel costs in the first quarter, the carrier said, citing higher market jet fuel prices and increased flying during the period.

The company attributed the rise to both higher per-gallon prices in fuel markets and greater fuel consumption. Management pointed to longer average stage lengths and a higher number of flights compared with the pandemic period as factors that increased total fuel burn.

American did not provide a breakdown showing how much of the $341 million reflected higher per-gallon prices versus changes in overall fuel consumption in its initial disclosure of quarterly results.

In prior quarters the airline has relied on fuel hedges, newer, more fuel-efficient aircraft and network adjustments to manage fuel-price volatility. The carrier noted that hedging programs can reduce short-term cost swings but that unexpected moves in energy markets still create variability in operating expenses.

The increase in jet fuel spending coincided with a fuller flying schedule as passenger demand recovered. Fuel is a major operating cost for legacy carriers; shifts in crude oil and refined fuel prices can affect unit costs and operating margins from quarter to quarter.

American did not provide a forecast for future fuel expenses or a detailed account of hedging gains or losses tied specifically to the $341 million figure in its initial report.

Investors and analysts are likely to focus on fuel spending when American releases full first-quarter results, including revenue, unit costs and any updated guidance on expenses and capacity for the coming months.