American Airlines Group (NASDAQ:AAL) Releases Quarterly Earnings Results, Misses Expectations By $0.22 EPS

American Airlines Group (NASDAQ:AAL) announced its earnings results on Tuesday. The airline reported $0.16 earnings per share for the quarter, missing the consensus estimate of $0.38 by ($0.22), Zacks reports. American Airlines Group had a net margin of 1.11% and a negative return on equity of 18.14%. The firm’s revenue for the quarter was up 2.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.86 EPS. American Airlines Group updated its Q1 2026 guidance to -0.500–0.100 EPS and its FY 2026 guidance to 1.700-2.700 EPS.

American Airlines Group Stock Performance

Shares of NASDAQ AAL opened at $14.02 on Tuesday. The stock has a market capitalization of $9.25 billion, a P/E ratio of 16.42, a PEG ratio of 0.52 and a beta of 1.23. The stock’s fifty day moving average is $14.89 and its 200 day moving average is $13.30. American Airlines Group has a 52 week low of $8.50 and a 52 week high of $17.47.

Key American Airlines Group News

Here are the key news stories impacting American Airlines Group this week:

• Positive Sentiment: Record revenue, stronger balance sheet and bullish 2026 guidance: American reported record Q4 revenue ($14.0B) and full-year revenue ($54.6B), cut total debt by $2.1B in 2025, and guided FY2026 adjusted EPS to $1.70–$2.70 with expected free cash flow >$2B — a clear tailwind for future profitability. American Airlines Reports Fourth-Quarter and Full-Year 2025 Financial Results
• Positive Sentiment: Demand mix and premium strength: Management highlighted strong premium-cabin and corporate travel demand (bookings up in January, system revenue intake up double digits for early 2026), which supports higher-margin revenue and the company’s profit forecast. American Airlines forecasts 2026 profit above estimates on strong premium demand
• Neutral Sentiment: Competitive pressure at key hubs: United’s big summer expansion at Chicago O’Hare escalates hub competition — a factor that could pressure fares or market share in a major U.S. market, timing/impact uncertain. United Airlines ramps up Chicago flights as O’Hare rivalry with American Airlines heats up
• Negative Sentiment: Earnings miss and weak profitability metrics: AAL reported $0.16 EPS vs. $0.38 expected; GAAP net income fell sharply YoY and operating margins compressed — an immediate negative for near-term sentiment and valuation. American Airlines projects revenue growth for 2026, misses earnings estimates for fourth quarter
• Negative Sentiment: Revenue and operational hits from external shocks: The company said the government shutdown reduced Q4 revenue by ~$325M and Winter Storm Fern caused >9,000 cancellations; Q1 guidance factors in a ~1.5‑point capacity reduction and a negative revenue hit, which clouds near-term results. American Airlines Group Inc. Reports Record Fourth-Quarter Revenue Despite Government Shutdown Impact

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the company. TD Cowen reaffirmed a “buy” rating on shares of American Airlines Group in a report on Wednesday, January 7th. Evercore ISI upped their price objective on shares of American Airlines Group from $13.00 to $14.00 and gave the company an “in-line” rating in a research note on Monday, September 29th. Susquehanna raised shares of American Airlines Group from a “neutral” rating to a “positive” rating and lifted their target price for the stock from $14.00 to $20.00 in a research report on Friday, January 9th. Wells Fargo & Company assumed coverage on shares of American Airlines Group in a research report on Thursday, December 18th. They issued an “equal weight” rating and a $17.00 price target for the company. Finally, Barclays raised their price objective on shares of American Airlines Group from $12.00 to $16.00 and gave the stock an “equal weight” rating in a research note on Monday, January 12th. Eight analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus target price of $17.61.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. XTX Topco Ltd increased its position in American Airlines Group by 126.6% during the 3rd quarter. XTX Topco Ltd now owns 75,068 shares of the airline’s stock valued at $844,000 after purchasing an additional 41,944 shares during the period. United Capital Financial Advisors LLC increased its position in shares of American Airlines Group by 26.1% during the third quarter. United Capital Financial Advisors LLC now owns 13,247 shares of the airline’s stock worth $149,000 after buying an additional 2,739 shares during the period. Voleon Capital Management LP acquired a new stake in shares of American Airlines Group during the third quarter worth $1,537,000. Voloridge Investment Management LLC raised its stake in American Airlines Group by 19.5% during the third quarter. Voloridge Investment Management LLC now owns 3,729,689 shares of the airline’s stock worth $41,922,000 after buying an additional 609,457 shares during the last quarter. Finally, Quantessence Capital LLC acquired a new position in American Airlines Group in the third quarter valued at $145,000. 52.44% of the stock is currently owned by institutional investors and hedge funds.

About American Airlines Group

American Airlines Group Inc is a leading global airline holding company headquartered in Fort Worth, Texas. Formed in December 2013 through the merger of AMR Corporation (parent of American Airlines) and US Airways Group, the company operates one of the world’s largest passenger and cargo networks. Its subsidiaries include American Airlines, which provides mainline service, and American Eagle, a network of regional carriers operating short- and medium-haul routes on behalf of the mainline carrier.

The company offers scheduled air transportation for passengers and cargo to more than 350 destinations in over 50 countries.