TD Cowen analyst Thomas Fitzgerald CFA maintained a Buy rating on American Airlines today and set a price target of $18.00.
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Thomas Fitzgerald CFA has given his Buy rating due to a combination of factors that indicate a positive outlook for American Airlines. The company is expected to benefit from an improving revenue environment, driven by a recovering corporate travel sector and a new co-brand card deal. Additionally, American Airlines is optimizing its revenue management and retailing strategies, which are anticipated to enhance its revenue per available seat mile (RASM).
Furthermore, the airline’s strategic overhaul since mid-2024 is set to yield significant benefits, with material improvements in revenue generation projected for 2026. The introduction of new aircraft models like the 787 and A321XLR, along with reconfigurations of existing fleets, is expected to boost international flying and premium cabin yields. The company’s focus on enhancing the customer experience, coupled with its upcoming 100th anniversary, presents further opportunities for growth and engagement with consumers.