Share Performance
American Airlines Group Inc. (NASDAQ: AAL) shares traded lower. The stock last changed hands near the low end of its intraday range, with recent prices below the 52-week midpoint roughly between about $8.50 and $17.50.
AAL 52-Week Context
Over the past year, American Airlines shares have fluctuated broadly, with the 52-week high near the upper teens and the low in the single digits. The stock has underperformed some airline peers in recent months amid mixed demand signals and cost pressures.
Quarterly Results
American Airlines reported record fourth-quarter revenue of about $14.0 billion and record full-year revenue of roughly $54.6 billion. Fourth-quarter GAAP net income was $99 million versus full-year net income of about $111 million. Excluding special items, adjusted Q4 net income was about $106 million, or roughly $0.16 per share, and full-year adjusted net income was about $237 million, or around $0.36 per share.
Revenue in the quarter was negatively affected by an estimated $325 million impact from a U.S. government shutdown. American said year-over-year passenger unit revenue performance improved sequentially in many international segments, while domestic passenger unit revenue was down.
Year-Over-Year and Annual Context
Compared with the year-ago period, revenue grew modestly while profitability was sharply lower. On a GAAP basis, both quarterly and full-year earnings fell from 2024 levels amid weaker margins and the quarter’s external disruptions.
Guidance
For 2026, the company anticipates adjusted earnings per share in a range of $1.70 to $2.70 and expects more than $2 billion in free cash flow, reflecting planned capacity growth and revenue improvement.
Sector & Macro Factors
Broader airline and travel sector stocks, including American Airlines, have been sensitive to macroeconomic pressures. Elevated fuel costs, softer domestic leisure demand, and operational disruptions from weather events and shutdowns have weighed on margins industry-wide. These sector headwinds have also coincided with mixed investor sentiment toward cyclical transportation stocks amid broader economic uncertainty. Airline peers such as United and Delta have reported stronger premium demand, highlighting competitive dynamics within the industry.
Cash Flow & Balance Sheet
In 2025, American reduced total debt by about $2.1 billion, ending the year with substantial available liquidity. Management highlighted strategic investments in operations and fleet enhancements aimed at improving reliability and yield.
Incoming Quarter Outlook
The company expects first-quarter 2026 revenue growth of 7% to 10% year-over-year, driven by strength in premium cabins and corporate channels, though winter weather events could damp near-term demand.
Investor Summary
Today’s trading reflects investor focus on the earnings miss relative to adjusted EPS expectations and mixed profitability trends, set against broader airline and macroeconomic challenges. The stock remains pressured amid recent performance trends and sector context.
