The Iran War Is Creating Winners and Losers: Lockheed Martin (LMT) vs. American Airlines (AAL) Fatima Gulzar Sun, July 26, 2026 at 2:50 AM PDT 7 min read AAL LMT American Airlines Group Inc. (NASDAQ: AAL ) and Lockheed Martin Corporation (NYSE: LMT ) Corporation (NYSE:LMT) both reported earnings the same day this week. Both companies are being shaped by the same event, the ongoing war involving Iran. Nonetheless, one firm is getting hurt by it, and the other is getting a big boost, and their stock moves on the same day show just how differently one conflict can hit two different industries. American Airlines Group Inc. (NASDAQ: AAL ): Fuel Costs Are Winning American Airlines Group Inc. (NASDAQ:AAL) cut how much money it expects to make this year. It now says it could earn as much as 65 cents a share or lose as much as 65 cents a share for all of 2026, with breakeven right in the middle. That's worse than its last guess in April, which ranged from a loss of 40 cents to a profit of $1.10 a share, and that April number was already a cut from what the company expected at the start of the year. The reason is simple: jet fuel got much more expensive again. American Airline's fuel costs jumped 83% in the second quarter, almost exactly matching how much extra revenue it brought in. That means the fare increases barely kept up with the fuel bill. Higher ticket prices only covered about half of the added fuel cost. For the current quarter, American now expects to lose between 10 cents and 70 cents a share, far worse than the 26-28 cents in profit Wall Street had expected. The stock fell about 8% on the news. American's second-quarter numbers themselves actually beat expectations, with 15 cents a share in adjusted profit versus 3 cents expected and revenue of $16.74 billion versus $16.71 billion expected. But that quarter is already old news. What spooked investors is what comes next. Every one-cent rise in fuel prices costs American Airlines about $46 million a year, and fuel prices have been swinging wildly for weeks. CEO Robert Isom said in a note to staff, "While there's still work ahead, the progress we're making is real," but American also has less room to absorb these costs than rivals Delta and United, whose profit margins are already bigger. Lockheed Martin Corporation (NYSE: LMT ): War Means More Orders Lockheed Martin Corporation (NYSE:LMT) had the opposite kind of day. The firm raised its full-year sales guidance to a range of $79.75 billion to $81.75 billion, up from $77.5-80 billion, and raised its profit guidance too, now $29.95 to $30.65 a share. Both numbers beat what Wall Street expected. Revenue for the quarter came in at $20.06 billion, up 11%, and profit was $1.84 billion, or $7.94 a share, way up from just $1.46 a share a year ago, when the company had taken a big one-time charge. The...
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