American Airlines has warned that airfares could remain elevated even if fuel prices decline, as the company grapples with soaring fuel costs that have overshadowed its record revenue. Despite a reported 29% increase in cargo revenue and a significant boost in overall earnings, the airline is forecasting deeper losses due to a staggering 67% rise in fuel expenses. U.S. airlines, in general, seem to prefer maintaining higher fares over fuller planes amidst this financial squeeze, indicating a shift in their operational strategy. As first-quarter forecasts indicate a continued decline, American Airlines and several other carriers are slashing their growth outlooks and preparing for a challenging year ahead, including potential losses into the 2026 fiscal outlook.