American Airlines Group (NASDAQ:AAL – Get Free Report) issued an update on its fourth quarter 2026 earnings guidance on Friday. The company provided EPS guidance of -1.100–0.500 for the period, compared to the consensus EPS estimate of -0.410. The company issued revenue guidance of $16.7 billion-$17.1 billion, compared to the consensus revenue estimate of $16.5 billion. American Airlines Group also updated its FY 2026 guidance to -1.600–1.000 EPS.
Wall Street Analyst Weigh In
AAL has been the subject of a number of research analyst reports. Zacks Research cut shares of American Airlines Group from a “strong-buy” rating to a “hold” rating in a research report on Friday, August 21st. Citigroup cut their target price on shares of American Airlines Group from $22.00 to $19.00 and set a “buy” rating on the stock in a research report on Friday, July 24th. Susquehanna cut their target price on shares of American Airlines Group from $20.00 to $15.00 and set a “positive” rating on the stock in a research report on Wednesday, October 7th. Weiss Ratings raised shares of American Airlines Group from a “sell (d)” rating to a “sell (d+)” rating in a research note on Thursday, October 8th. Finally, Cantor Fitzgerald set a $24.00 price target on shares of American Airlines Group in a report on Thursday, July 2nd. Eight research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $17.29.
American Airlines Group Price Performance
American Airlines Group stock opened at $12.03 on Friday. The business has a 50 day moving average of $13.13 and a 200-day moving average of $13.93. American Airlines Group has a 1 year low of $10.09 and a 1 year high of $18.79. The company has a market capitalization of $7.96 billion, a P/E ratio of -24.56 and a beta of 1.37.
American Airlines Group (NASDAQ:AAL – Get Free Report) last issued its quarterly earnings data on Thursday, October 22nd. The airline reported ($0.28) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.36) by $0.08. American Airlines Group had a negative net margin of 0.56% and a negative return on equity of 9.11%. The business had revenue of $16.34 billion during the quarter, compared to analyst estimates of $16.21 billion. During the same quarter last year, the business earned ($0.17) EPS. The firm’s quarterly revenue was up 19.3% on a year-over-year basis. Equities analysts anticipate that American Airlines Group will post -0.94 EPS for the current year.
Insiders Place Their Bets
In other American Airlines Group news, SVP Angela Owens sold 40,077 shares of the company’s stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $15.26, for a total value of $611,575.02. Following the completion of the transaction, the senior vice president directly owned 178,799 shares in the company, valued at approximately $2,728,472.74. This represents a 18.31% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.70% of the stock is owned by insiders.
American Airlines Group News Roundup
Here are the key news stories impacting American Airlines Group this week:
- Positive Sentiment: Record revenue and an earnings beat: Third-quarter revenue rose 19.3% year over year to $16.34 billion, exceeding estimates of $16.21 billion. The adjusted loss of $0.28 per share was narrower than the expected $0.36 loss, helped by premium demand and continued revenue growth. American sets new revenue records amid historic fuel cost pressure
- Positive Sentiment: Revenue outlook remains resilient: American’s fourth-quarter revenue guidance midpoint of $16.94 billion was reportedly above analyst expectations, suggesting strong demand and pricing momentum even as profitability remains pressured.
- Positive Sentiment: Morgan Stanley remains constructive: The firm maintained an “overweight” rating on AAL, though it reduced its price target from $24 to $22. The revised target still implies substantial upside from recent levels.
- Neutral Sentiment: Industry-wide fare increases may help offset costs: U.S. airlines are favoring higher fares over fuller planes as fuel expenses squeeze margins, potentially supporting American’s revenue but risking demand weakness. US airlines favor higher fares over fuller planes as fuel costs squeeze profits
- Negative Sentiment: Fuel costs are overwhelming revenue gains: Fuel expense increased roughly 67.5%, or $1.9 billion, year over year, contributing to a $182 million adjusted quarterly loss. Management cited historically high fuel prices as the main challenge.
- Negative Sentiment: Profit outlook deteriorated: American expects an adjusted fourth-quarter loss of approximately $0.50 to $1.10 per share and now anticipates a full-year 2026 loss. This weaker outlook initially pressured the stock despite the quarterly revenue beat. American Airlines forecasts 2026 loss as fuel costs outpace fare gains
- Negative Sentiment: Bearish options activity: Traders purchased an unusually large volume of AAL put options, indicating increased hedging or downside speculation around fuel prices and the company’s earnings outlook.
About American Airlines Group
American Airlines Group Inc is a holding company whose principal subsidiary, American Airlines, provides scheduled passenger air transportation and air cargo services. The company operates a large mainline network under the American Airlines brand and offers regional service through carriers operating as American Eagle. Its services include domestic and international flights, connecting passengers through a network of hubs and focus cities.
American Airlines serves destinations throughout the United States, as well as markets in Canada, Mexico, the Caribbean, Central and South America, Europe, Asia and other international regions.
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