American Airlines (AAL) is scheduled to announce its earnings for the second quarter of 2025 on Thursday, July 24. AAL stock has declined by more than 28% year-to-date amid concerns about travel demand due to macroeconomic pressures and tariff uncertainty. Interestingly, the stock has risen 18% in the past month, as peer Deltpea Air Lines (DAL) reported better-than-expected Q2 earnings and reinstated its full-year guidance, which helped improve sentiment about the sector. Meanwhile, Wall Street expects American Airlines to report Q2 earnings per share (EPS) of $0.78, reflecting a 28% year-over-year decline. Revenue is expected to remain almost flat at $14.29 billion.
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Meanwhile, the company is focused on improving its position through cost management and debt reduction. AAL is also positive about the extension of its co-branded credit card partnership with Citi (C), with the latter becoming the exclusive issuer of the AAdvantage cards in the U.S. starting in 2026.
Analysts’ Views Ahead of AAL’s Q2 Earnings
Heading into Q2 earnings, Barclays analyst Brandon Oglenski slightly increased the price target for American Airlines stock to $12 from $11 and reiterated a Hold rating as part of a Q2 preview for the airline group. The 4-star analyst expects airlines’ earnings outlook to remain “subdued” due to higher jet fuel prices and persistent weakness in U.S. leisure demand. However, Oglenski thinks that investors would welcome any capacity reductions for the fourth quarter.
Meanwhile, Bernstein analyst David Vernon reiterated a Buy rating on American Airlines stock with a price target of $14. The 4-star analyst said that he was adjusting numbers for Q3 to reflect a tougher close-in guidance. Vernon said that he expects American Airlines to issue weaker Q3 guidance, as he believes that a softer leisure market is offsetting the recovery in corporate business. While Vernon’s Q3 estimates are below consensus expectations and indicate a slight loss in Q3 2025, he remains optimistic that full-year earnings will be positive. Vernon highlighted that AAL is the most heavily exposed to the U.S. domestic market, and main cabin leisure trends over the last few months have not been encouraging.
Is AAL Stock a Good Buy?
Wall Street has a Moderate Buy consensus rating on American Airlines stock based on seven Buys and five Holds. The average AAL stock price target of $13.91 indicates 11.2% upside potential.
