American Airlines (AAL) AI Stock Analysis

• Market Cap: $9.01B
• Dividend Yield: N/A
• Average Volume (3M): 65.18M
• Price to Earnings (P/E): 16.0
• Beta (1Y): 1.05
• Revenue Growth: 1.27%
• EPS Growth: 118.64%
• Country: US
• Employees: 133,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): -0.17
• Shares Outstanding: 660,086,500
• 10 Day Avg. Volume: 56,111,783
• 30 Day Avg. Volume: 65,181,930
• PEG Ratio: 5.69
• Price to Book (P/B): -2.88
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 8.81
• Enterprise Value/Market Cap: 3.98
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 3.30
• Enterprise Value/Ebitda: 8.91
• 1Y Price Target: $14.82
• Price Target Upside: 11.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): 0.73
• Revenue Forecast (FY): $54.81B

• Rating: 63 Neutral
• Price Target: $14.50 ▲(8.94% Upside)

American Airlines' stock score is driven by a bullish technical outlook, despite financial challenges and fair valuation. The company's strategic investments and revenue growth are positive, but high leverage and profitability issues pose risks. Investors should be cautious of potential overbought conditions.

Positive Factors

Revenue Growth

The significant growth in corporate revenue indicates strong sales and distribution efforts, enhancing market position and supporting long-term revenue expansion.

Strategic Partnerships

The expanded partnership with Citi is set to significantly boost operating income, leveraging co-branded credit cards and loyalty programs for sustained financial benefits.

Premium Offerings Expansion

Enhancing premium offerings can attract high-value customers, improve customer satisfaction, and increase revenue per passenger, supporting long-term profitability.

Negative Factors

High Leverage

Significant leverage poses a risk to financial stability, limiting flexibility and increasing vulnerability to economic downturns, which could impact long-term operations.

Profitability Challenges

Low profitability margins indicate operational challenges, which may hinder the company's ability to invest in growth and compete effectively over the long term.

Cash Generation Issues

Declining free cash flow growth suggests difficulties in cash generation, potentially affecting the company's ability to fund operations and strategic initiatives sustainably.

American Airlines Business Overview & Revenue Model

Company Description

American Airlines (AAL) is one of the largest airlines in the world, headquartered in Fort Worth, Texas. It operates in the airline sector, providing passenger and cargo air transportation services. American Airlines serves a vast network of domestic and international destinations, offering a range of services including scheduled flights, mileage programs, and ancillary services such as in-flight amenities and travel packages.

How the Company Makes Money

American Airlines generates revenue primarily through ticket sales for passenger travel, which contributes a significant portion of its earnings. The airline also earns money from cargo services, which involve transporting goods and freight. Additional revenue streams include ancillary fees for services such as checked baggage, seat selection, and in-flight purchases. The company benefits from its loyalty program, AAdvantage, which drives repeat business and partnerships with hotels, car rental companies, and other travel-related services. Moreover, American Airlines engages in co-branded credit card partnerships, further enhancing its revenue through transaction fees and customer spending. The airline's financial performance is also influenced by factors such as fuel prices, operational efficiency, and demand fluctuations in the travel industry.

American Airlines Financial Statement Overview

Summary

American Airlines shows moderate revenue growth but faces significant challenges in profitability and financial stability. High leverage and negative equity pose risks, while cash flow efficiency shows some resilience. Improvement in profitability and balance sheet strength is needed.

Income Statement

American Airlines shows a moderate revenue growth rate of 8.1% TTM, indicating a positive trajectory. However, the net profit margin is low at 1.11%, suggesting limited profitability. The EBIT and EBITDA margins are also modest, reflecting operational challenges. Overall, while revenue is growing, profitability remains constrained.

Balance Sheet

The balance sheet reveals significant leverage with a high debt-to-equity ratio of -9.10 TTM, indicating financial risk. The negative stockholders' equity suggests potential solvency issues. Return on equity is negative, highlighting profitability challenges. The equity ratio is also negative, reflecting a weak financial position.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 24.32% TTM, indicating cash generation issues. The operating cash flow to net income ratio is 0.15, suggesting moderate cash flow efficiency. The free cash flow to net income ratio is relatively strong at 0.80, indicating decent cash conversion despite the decline in growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.29B	54.21B	52.79B	48.97B	29.88B	17.34B
Gross Profit	10.85B	11.50B	11.82B	9.04B	-422.00M	-7.32B
EBITDA	4.02B	5.01B	5.20B	4.13B	1.59B	-7.86B
Net Income	602.00M	846.00M	822.00M	127.00M	-1.99B	-8.88B
Balance Sheet
Total Assets	62.14B	61.78B	63.06B	64.72B	66.47B	62.01B
Cash, Cash Equivalents and Short-Term Investments	6.86B	6.98B	7.58B	8.96B	12.43B	6.86B
Total Debt	36.06B	37.54B	40.66B	43.69B	46.18B	41.02B
Total Liabilities	66.10B	65.76B	68.26B	70.52B	73.81B	68.88B
Stockholders Equity	-3.96B	-3.98B	-5.20B	-5.80B	-7.34B	-6.87B
Cash Flow
Free Cash Flow	882.00M	1.30B	1.21B	-733.00M	292.00M	-8.50B
Operating Cash Flow	3.77B	3.98B	3.80B	2.17B	704.00M	-6.54B
Investing Cash Flow	-638.00M	-968.00M	-502.00M	636.00M	-5.98B	-4.34B
Financing Cash Flow	-3.13B	-2.79B	-3.21B	-2.63B	5.29B	10.99B

American Airlines Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AAL, the sentiment is Positive. The current price of 13.31 is above the 20-day moving average (MA) of 12.81, above the 50-day MA of 12.44, and above the 200-day MA of 12.25, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 55.80 is Neutral, neither overbought nor oversold. The STOCH value of 62.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AAL.

American Airlines Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RYAAY	83 Outperform	$32.24B	12.31	28.67%	1.55%	14.75%	71.73%
DAL	78 Outperform	$38.45B	8.30	28.52%	1.15%	4.33%	-1.58%
LTM	69 Neutral	$12.46B	11.33	161.29%	2.30%	5.07%	62.83%
UAL	68 Neutral	$31.54B	9.63	25.59%	―	4.24%	20.29%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AAL	63 Neutral	$9.01B	16.00	―	―	1.27%	118.64%
LUV	61 Neutral	$16.78B	49.45	4.22%	2.20%	0.65%	―

American Airlines Corporate Events

American Airlines Reports Q3 2025 Financial Results

American Airlines Group Inc., a major player in the global airline industry, operates thousands of flights daily to over 350 destinations worldwide and is a founding member of the oneworld alliance. In its third-quarter 2025 financial results, American Airlines reported a record revenue of $13.7 billion, despite facing a net loss of $114 million. The company highlighted its strong cost management and strategic investments aimed at enhancing customer experience and expanding its network.

American Airlines’ Earnings Call: Revenue Growth Amid Challenges

The recent earnings call of American Airlines Group Inc. presented a mixed sentiment, highlighting robust revenue performance and strategic investments, while also acknowledging financial losses and challenges in certain market segments. The call underscored the company’s commitment to growth through premium offerings and strategic partnerships, despite facing some headwinds.

American Airlines Reports Record Revenue Amid Challenges

On October 23, 2025, American Airlines reported its third-quarter financial results, revealing a record revenue of $13.7 billion but a GAAP net loss of $114 million. The company remains focused on strategic priorities, including expanding its indirect revenue share and enhancing customer experience with new lounges and aircraft amenities. Despite challenges like weather events and FAA outages, American Airlines maintained operational resilience and aims to reduce its total debt below $35 billion by 2027.

The most recent analyst rating on (AAL) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on American Airlines stock, see the AAL Stock Forecast page.

American Airlines Updates Bylaws for Governance Modernization

On August 6, 2025, American Airlines Group Inc.’s Board of Directors approved amendments to the company’s bylaws, effective immediately. These changes include updates to procedural mechanics and disclosure requirements for shareholder nominations and proposals, enhancements to forum selection requirements, and modernization of corporate governance practices. The amendments aim to align with current market practices and provide the Board with greater flexibility in managing shareholder meetings.

The most recent analyst rating on (AAL) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on American Airlines stock, see the AAL Stock Forecast page.