
American Airlines (AAL) Stock Forecast & Price Target
American Airlines (AAL) Analyst Ratings
Bulls say
American Airlines Group is poised for a positive outlook due to a projected ~$1 billion in steady state ex-fuel cost savings and a 20% increase in premium seats, which could enhance revenue generation as credit card economics align with peers. The airline's successful fleet renewal has resulted in possessing the youngest fleet among US legacy carriers, positioning it to capitalize on operational excellence and potential margin expansion. Additionally, the company is expected to reduce debt by approximately $6 billion through 2027, further strengthening its financial standing and improving its balance sheet.
Bears say
The negative outlook on American Airlines Group's stock is primarily driven by its highly leveraged balance sheet, reflected in an adjusted net debt to capital ratio of 119%, significantly higher than that of competitors such as Alaska Airlines, JetBlue, Spirit, and Southwest, which are positioned at 68%. Additionally, the airline faces persistent revenue challenges exacerbated by the growth of ultra-low-cost carriers at its major hubs, which is expected to further strain earnings. Furthermore, while management has recognized the need to slow growth and improve credit card economics—a previously missed revenue opportunity—specific risks remain, including over-reliance on regional jets and deteriorating competitive capacity dynamics, which could amplify earnings volatility in a fluctuating market.
This aggregate rating is based on analysts' research of American Airlines and is not a guaranteed prediction by Public.com or investment advice.
American Airlines (AAL) Analyst Forecast & Price Prediction
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