American Airlines further cut its 2026 earnings outlook, citing higher fuel costs, a sign that a jump in fares isn’t enough for the U.S. airline that flies the most to fully offset this year’s spike in fuel prices.

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American said it could post an adjusted loss per share of as much as 65 cents up to earnings per share of 65 cents this year, below the range it estimated in April between a loss of 40 cents per share up to earnings of $1.10 a share.

Fuel prices have been volatile even in the few short weeks of the U.S. airline earnings season that kicked off in July, which has clouded the outlook for airlines this year. Carriers say strong demand and higher fares are helping offset some of the spike. Fuel is airlines’ biggest expense after labor.

For the current quarter, American said it could report an adjusted loss of between 70 cents a share and 10 cents a share, below the 28 cents a share in earnings Wall Street expected, but it forecast revenue to rise between 16% to 19%, above the the 16.6% analysts project.

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American’s profit in the three months ended June 30 fell 88% to $71 million, or 11 cents a share from a year earlier, while revenue rose 16.3% to $16.74 billion. Passenger revenue for available seat mile rose 10% from last year.

Here is what American reported in the second quarter compared with Wall Street estimates compiled by LSEG:

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• 15 cents adjusted vs. 3 cents expected
•  $16.74 billion vs. $16.71 billion expected