AAL

American Airlines Group (AAL) recently closed at $13.43, down 1.54% for the session, after a month where the stock fell 10.68% compared with a 1.96% decline for the Transportation sector. This move comes as investors focus on the company’s next earnings release, with consensus forecasts pointing to a loss of $0.26 per share and revenue growth expectations of 17.77% for the quarter. At a recent share price of $12.95, American Airlines Group has seen its short-term momentum fade, with a 30-day share price return of down 15.19% and a year-to-date share price return of down 16.34%. The 1-year total shareholder return of down 3.29% and 5-year total shareholder return of down 33.69% point to a tougher longer-term journey. Scan how American Airlines Group stacks up against other transport stocks by reviewing a curated group of list of solid balance sheet and fundamentals (53 results). After a sharp pullback and with American Airlines Group still trading well below the average analyst price target, investors are left weighing the bigger swing. Is most of the potential recovery already gone, or is meaningful upside still on the table as the valuation stacks up against peers and its own history next? With American Airlines Group last closing at $12.95 against a narrative fair value of about $19.08, the widely followed view paints a sizeable valuation gap that hinges on future earnings power and cash generation rather than current profitability. Read the complete narrative. Read the complete narrative. The core of this American Airlines Group narrative is not just higher fares. It leans heavily on rising loyalty revenues, firmer margins, and a future profit base that assumes meaningful improvement from today. Curious which earnings and margin paths have to line up to support that kind of gap to fair value? Result: Fair Value of $19.08 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the American Airlines Group narrative still faces pressure from higher labor and fuel costs, as well as a heavy debt load that can strain future flexibility. Find out about the key risks to this American Airlines Group narrative. With American Airlines Group facing both clear risks and some potential rewards, it makes sense to check the numbers yourself and move with intention. You can weigh both sides quickly by reviewing the 3 key rewards and 3 important warning signs Do not stop with American Airlines Group. Broaden your watchlist now with focused stock ideas that match different goals so you are not leaving potential opportunities untouched. Explore potential mispricing by reviewing companies that screen as attractively valued using the 50 high quality undervalued stocks. Strengthen your income approach by reviewing companies that feature the 12 dividend fortresses. Tighten your risk controls by scanning companies that pass the 74 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AAL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at American Airlines (NASDAQ:AAL) and the best and worst performers in the consumer discretionary - travel and vacation providers industry. The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Travel and vacation providers operate tour packages, cruise lines, online travel agencies, and vacation rental platforms, connecting consumers with leisure and business travel experiences. Tailwinds include robust post-pandemic travel demand, a consumer preference shift toward experiences over goods, and technology-enabled personalization improving conversion and loyalty. However, headwinds are significant: the industry is acutely sensitive to macroeconomic cycles, geopolitical instability, and fuel price volatility. Low switching costs mean fierce price competition, while capacity additions in segments like cruises can lead to oversupply. Regulatory burdens, weather disruptions, and public health risks further create episodic but potentially severe demand shocks. The 19 consumer discretionary - travel and vacation providers stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 0.6% above. While some consumer discretionary - travel and vacation providers stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.9% since the latest earnings results. One of the ‘Big Four’ airlines in the US, American Airlines (NASDAQ:AAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights. American Airlines reported revenues of $16.74 billion, up 16.3% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with full-year EPS guidance missing analysts’ expectations. The market seems disappointed with the results as the stock is down 5.5% since reporting and currently trades at $13.98. Read our full report on American Airlines here, it’s free. Building mini-communities at places such as oil drilling sites, Target Hospitality (NASDAQ:TH) is a provider of specialty workforce lodging accommodations and services. Target Hospitality reported revenues of $85.46 million, up 38.7% year on year, outperforming analysts’ expectations by 7.8%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates. Target Hospitality delivered the biggest analyst estimate beat, fastest revenue growth, and highest full-year guidance raise of the whole group. The market seems happy with the results as the stock is up 5.4% since reporting. It currently trades at $17.40. Is now the time to buy Target Hospitality? Access our full analysis of the earnings results here, it’s free. Spun off from Hilton Worldwide in 2017, Hilton Grand Vacations (NYSE:HGV) is a global timeshare company that provides travel experiences for its customers through its timeshare resorts and club membership programs. Hilton Grand Vacations reported revenues of $1.36 billion, up 7.3% year on year, falling short of analysts’ expectations by 2.7%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates. As expected, the stock is down 12.7% since the results and currently trades at $44.91. Read our full analysis of Hilton Grand Vacations’s results here. Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions (NASDAQ:LIND) offers cruising experiences to remote destinations in partnership with National Geographic. Lindblad Expeditions reported revenues of $199.2 million, up 18.6% year on year. This result topped analysts’ expectations by 7.2%. It was a strong quarter as it also produced a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates. Lindblad Expeditions had the weakest full-year guidance update among its peers. The stock is up 7.4% since reporting and currently trades at $31.77. Read our full, actionable report on Lindblad Expeditions here, it’s free. Founded in 1919, Hilton Worldwide (NYSE:HLT) is a global hospitality company with a portfolio of hotel brands. Hilton reported revenues of $3.34 billion, up 6.5% year on year. This number met analysts’ expectations. Taking a step back, it was a mixed quarter as it also logged a decent beat of analysts’ EBITDA estimates but EBITDA guidance for next quarter missing analysts’ expectations. The stock is flat since reporting and currently trades at $329.23. Read our full, actionable report on Hilton here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

American Airlines’ second quarter results met Wall Street’s top-line expectations and saw strong year-over-year revenue growth. However, the market reacted negatively, reflecting investor concern over sharply reduced operating margins and a challenging cost environment. Management pointed to broad-based demand and the effectiveness of its four-pillar commercial strategy—focusing on customer experience, network, premium revenue, and loyalty—as key drivers of revenue gains. CEO Robert Isom highlighted improvements in premium offerings and the loyalty program but acknowledged that a significant increase in fuel expenses offset much of the revenue strength. Is now the time to buy AAL? Find out in our full research report (it’s free). Revenue: $16.74 billion vs analyst estimates of $16.71 billion (16.3% year-on-year growth, in line) Adjusted EPS: $0.15 vs analyst estimates of $0.05 (significant beat) Revenue Guidance for Q3 CY2026 is $16.09 billion at the midpoint, roughly in line with what analysts were expecting Adjusted EPS guidance for Q3 CY2026 is -$0.40 at the midpoint, below analyst estimates of $0.31 Operating Margin: 2.7%, down from 7.9% in the same quarter last year Revenue Passenger Miles: up 2.36 billion year on year Market Capitalization: $9.82 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Duane Pfennigwerth (Evercore ISI) asked why American isn’t cutting capacity more aggressively given rising fuel costs. CEO Robert Isom responded that capacity is being actively reviewed each quarter, with recent reductions already implemented and further adjustments possible if conditions persist. Andrew Didora (Bank of America) questioned unit cost growth and upcoming labor negotiations. CFO Devon May explained that pilot contract increases are factored into forecasts and that cost discipline is expected to continue, with growth rates adjusting to fuel and demand trends. John Godyn (Goldman Sachs) pressed on the sustainability of premium revenue gains. Chief Commercial Officer Nathaniel Pieper highlighted that nearly half of ticketed revenue now comes from premium products, driven by both corporate and leisure demand, and that premium seat capacity will continue to expand. Jamie Baker (J.P. Morgan) inquired about the margin gap with competitors and labor cost harmonization. CEO Robert Isom stated that while labor costs have converged across airlines, American’s cost initiatives and commercial focus are key to closing the margin gap. Michael Linenberg (Deutsche Bank) asked about underperforming hubs and credit card spend lagging peers. Pieper acknowledged that while Dallas and Los Angeles outperformed, other hubs are being re-optimized, and the Citi card partnership is still ramping up. In the coming quarters, our team will track (1) American’s ability to sustain premium revenue growth through fleet investments and loyalty program enhancements, (2) the company’s progress in managing capacity and cost discipline amid fuel price volatility, and (3) whether network optimization in key hubs translates into improved financial results. Execution on these fronts will be crucial for margin recovery and long-term profitability. American Airlines currently trades at $14.87, in line with $14.79 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

JetBlue (JBLU) jumped 9% after the airline beat Q2 adjusted EPS estimates and setting a 2028 profit target of at least $1 per share, pushing the stock 33% higher YTD. Delta (DAL) and United (UAL) rose moderately on JetBlue's demand read, despite neither carrier reporting company-specific news Tuesday. JetBlue's GAAP net loss widened to $247 million as fuel costs surged 81%, leaving full-year operating margin still guided negative despite the rally. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Delta Air Lines didn't make the cut. Grab the names FREE today. Shares of JetBlue Airways (NASDAQ:JBLU) are up 9% to $5.94 in Tuesday midday trading after the carrier posted a Q2 2026 adjusted-EPS beat, reinstated its full-year outlook, and introduced a long-term 2028 profit target of at least $1 per share. The move is lifting the broader airline group even as JetBlue's headline GAAP loss actually widened. JetBlue stock is now up 33% year to date (YTD) after Tuesday's pop, and the read-through to industry demand is what's bidding up peers. None of the other carriers had clear, company-specific catalysts Tuesday. This is a turnaround-optimism rally powered by adjusted metrics and forward targets while GAAP profitability remains out of reach. Fuel costs still surged, and JetBlue's full-year operating margin is still guided negative. JetBlue's Q2 revenue rose 14.5% year over year (YoY) to $2.7 billion, in line with the $2.69 billion consensus, with unit revenue (RASM) up 10.9%. Its adjusted loss of $0.66 per share beat the $0.6828 loss expected. JetBlue recaptured 50% of higher fuel costs in Q2, ahead of the 30% to 40% pace that had been expected, with full recapture expected by early 2027. The airline reinstated full-year 2026 guidance calling for RASM growth of 10% to 12.5%, an adjusted operating margin of -2% to -5%, and a full-year 2026 jet fuel price of about $3.49 per gallon. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Delta Air Lines didn't make the cut. Grab the names FREE today. CEO Joanna Geraghty stated that the company is "introducing a long-term financial target of at least $1 in earnings per share for 2028" as JetBlue continues its path toward sustained profitability. Its JetForward turnaround program has already generated $470 million of cumulative incremental EBIT and is targeted at $1.2 billion by 2028. Delta Air Lines (NYSE:DAL) shares are up 3% to $88.80, and United Airlines (NASDAQ:UAL) shares are up 2% to $123.22, both moving on JetBlue's demand read. Neither carrier reported news of its own Tuesday. Southwest Airlines (NYSE:LUV) shares are up 2% to $46.06, and American Airlines Group (NASDAQ:AAL) shares are trading up 1% to $15.11. The move fits the pattern where a single carrier's unit-revenue beat can pull the whole tape higher. Shares of the U.S. Global Jets ETF (NYSEARCA:JETS) are up 3% to $31.80. The JETS ETF is a concentrated, single-sector airline product, so it can provide substantial gains on days like this and may also bring drawdowns when fuel costs spike or travel demand softens. The bull case on JetBlue leans on the revenue beat, the 10.9% RASM gain, faster-than-expected fuel recapture, JetForward execution, and the credibility of the 2028 EPS target. Premium RASM climbed 13%, loyalty revenue grew 13% YoY, and Fort Lauderdale unit revenue rose 11% despite 40% capacity growth in the market. The turnaround narrative has a track record behind it, too. JetForward delivered $305 million of incremental EBIT in 2025, above its $290 million target, and is guided to at least $310 million more in 2026. That gives the 2028 goal some execution credibility as JetBlue scales BlueFirst domestic first class, its Boston BlueHouse lounge, and the Blue Sky partnership with United Airlines. The bear case is real, though. JetBlue's GAAP net loss widened to $247 million from $74 million a year ago as average fuel cost surged 81% to $4.23 per gallon, and full-year operating margin is still guided negative. Investors should consider keeping their position sizes modest given the execution risk on a long-dated 2028 goal and JetBlue stock's beta of 1.73. Market watchers can watch for whether JetBlue stock holds above the prior $5.56 average analyst target after Tuesday's rally and whether Q3 2026 RASM guidance of 12.5% to 16.5% is corroborated by peer commentary. Traders can also monitor WTI crude oil at $79.04 per barrel, since jet fuel remains the single biggest swing factor for JetBlue's 2026 margin path. JetBlue's Q2 delivered enough good news to power a double-digit rally and pull peers Delta, United, Southwest, and American with it, though the story remains a slow turnaround rather than a clean profit inflection. The next checkpoints come from other airline earnings reports and any move in the crude complex. For investors seeking exposure through the U.S. Global Jets ETF, the same concentration note applies to their portfolios. After all, airline stocks tend to move together on fuel and demand headlines. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Delta Air Lines didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.

American Airlines Group Inc. AAL used its second-quarter earnings call to highlight progress from its commercial strategy, with management emphasizing premium revenues, loyalty growth and network improvements despite higher fuel costs. Executives also pointed to a challenging fuel environment while maintaining that revenue momentum and cost discipline can improve profitability as conditions normalize. CEO Robert Isom said American Airlines’ four-pillar commercial strategy is producing measurable results across customer experience, network growth, premium revenues and loyalty. He noted that second-quarter revenues reached a record level, helping offset a substantial increase in fuel expense. The company reported adjusted earnings of $0.15 per share, topping the Zacks Consensus Estimate of $0.03 by 400%. Revenues came in at $16.74 billion, beating the Zacks Consensus Estimate of $16.70 billion. American Airlines Group Inc. price-consensus-eps-surprise-chart | American Airlines Group Inc. Quote Management emphasized that American Airlines ended the quarter with $11.3 billion in liquidity while continuing efforts to improve efficiency and strengthen the balance sheet. Chief commercial officer Nathaniel Pieper highlighted stronger premium demand as a key driver of revenue improvement. Premium unit revenues increased more than 13% year over year, outperforming Main Cabin performance. American Airlines said managed corporate revenues increased 26% year over year, marking the fifth consecutive quarter of double-digit growth. Premium demand also benefited from expanded offerings and fleet upgrades. The company is increasing premium capacity through new Boeing 787-9 and Airbus A321XLR deliveries, along with retrofit programs across existing aircraft. Premium seats are expected to grow faster than non-premium capacity. Chief financial officer Devon May said fuel expense increased by more than $2.2 billion year over year during the quarter. He noted that revenue strength recovered nearly half of that increase. American Airlines expects third-quarter capacity growth of 3% to 5% year over year and revenue growth of 16% to 19%. CASM, excluding special items, fuel and profit sharing, is expected to increase 2.5% to 4.5%. Management guided for full-year adjusted earnings in the range of a loss of $0.65 to a profit of $0.65 per share, citing higher fuel costs as a major factor. Pieper said AAdvantage enrollment increased more than 30% year over year in the second quarter, supported by growth in major markets and internationally. The company also highlighted continued engagement through its credit card relationship. Second-quarter card spend increased 8% year over year. Management described loyalty as a core component of its long-term revenue strategy. Customer experience improvements were another focus, with American Airlines reporting higher customer satisfaction metrics and continued gains in on-time flight satisfaction. During Q&A, an Evercore ISI analyst questioned why American Airlines was not making larger capacity reductions amid fuel volatility. Isom said the company is adjusting capacity based on demand and fuel conditions while remaining focused on long-term network performance. A Bernstein analyst asked whether AAL should reduce parts of its network to improve financial returns. Pieper said the company is selectively optimizing its footprint, including adjustments in certain hubs. Management also defended its premium strategy when questioned about aircraft configurations. Pieper said American Airlines is matching aircraft types and premium offerings with market demand while maintaining operational flexibility. Management maintained that improving revenue generation remains the central opportunity for American Airlines. Isom said the company is focused on customer experience, network strength, premium offerings and loyalty as drivers of future performance. AAL expects capital expenditures of about $4 billion in 2026 and said it remains committed to reducing debt while maintaining liquidity. Executives highlighted improving revenue trends entering the second half of the year while acknowledging continued pressure from fuel costs and industry volatility. AAL sports a Zacks Rank #1 (Strong Buy) at present. The Zacks Rank is primarily driven by earnings estimate revisions and is designed to help identify stocks with stronger potential performance over a one-to-three-month timeframe. You can see the complete list of today’s Zacks #1 Rank stocks here. The stock carries a Value Score of A, Growth Score of B, Momentum Score of D and VGM Score of A. Zacks Style Scores evaluate value, growth and momentum characteristics, with higher grades indicating stronger attributes within each category. A Zacks Rank #1 combined with favorable Style Scores can indicate stronger stock-selection characteristics, although the Zacks Rank and Style Scores can change as earnings estimates and market conditions evolve after reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended June 2026, American Airlines (AAL) reported revenue of $16.74 billion, up 16.3% over the same period last year. EPS came in at $0.15, compared to $0.95 in the year-ago quarter. The reported revenue represents a surprise of +0.22% over the Zacks Consensus Estimate of $16.7 billion. With the consensus EPS estimate being $0.03, the EPS surprise was +400%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how American Airlines performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Operating cost per ASM excluding net special items and fuel - Total: 13.93 cents versus the four-analyst average estimate of 13.99 cents. Operating cost per ASM excluding net special items - Total: 19.89 cents versus the four-analyst average estimate of 20.14 cents. Passenger load factor (percent) - Total: 83.2% versus 84.9% estimated by four analysts on average. Average aircraft fuel price including related taxes - Total: 4.05 $/gal versus 4.12 $/gal estimated by four analysts on average. Passenger revenue per ASM - Total: 18.59 cents versus 18.75 cents estimated by four analysts on average. Total revenue per ASM - Total: 20.45 cents compared to the 20.44 cents average estimate based on four analysts. Available seat miles - Total: 81.84 billion versus the four-analyst average estimate of 81.56 billion. Yield - Total: 22.33 cents versus 22.07 cents estimated by three analysts on average. Fuel consumption - Total: 1,204.00 MGal versus 1,223.11 MGal estimated by three analysts on average. Revenue- Passenger: $15.21 billion versus $15.29 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +15.9% change. Revenue- Other: $1.25 billion versus $1.2 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +18% change. Revenue- Cargo: $273 million versus $219.72 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +29.4% change. View all Key Company Metrics for American Airlines here>>> Shares of American Airlines have returned -15.2% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in American Airlines Group Inc.? Here are five stocks we like better. American Airlines posted record Q2 revenue and said broad-based growth across every region and cabin helped offset a sharp increase in fuel costs. Revenue rose more than 16% year over year, with strong performance in premium, corporate, and loyalty-driven demand. Fuel remains the biggest near-term headwind, with second-quarter fuel expense up $2.2 billion from a year earlier and third-quarter fuel costs expected to rise further. The company cut its Q3 capacity outlook and now sees full-year adjusted earnings around breakeven at the midpoint. The airline is leaning on premium, loyalty, and network expansion to support growth, including stronger corporate revenue, faster AAdvantage enrollment, new routes, and upcoming Starlink Wi-Fi installation. American also said it has strong liquidity at $11.3 billion and is working to reduce debt over time. Flight Path to Profits: American Airlines Bets on SpaceX American Airlines Group (NASDAQ:AAL) reported record quarterly revenue in the second quarter of 2026, as executives said gains from commercial initiatives helped offset a sharp year-over-year increase in fuel costs. Chief Executive Officer Robert Isom said the airline delivered revenue growth of more than 16% from a year earlier, with improvement across every region served and every cabin offered. He attributed the results to American’s four-part commercial strategy: improving the customer experience, growing the global network, driving premium revenue and leading in loyalty. → 3 Photonics Companies Making Quantum Tech Possible Boarding Passes Now Being Issued for the Ultimate eVTOL Arbitrage “This outstanding broad-based revenue performance reflects the strength of our commercial strategy,” Isom said. He added that the quarter’s revenue performance helped offset nearly 50% of a $2.2 billion year-over-year increase in fuel expense. The company ended the quarter with more than $11 billion in available liquidity, and Chief Financial Officer Devon May said American finished the period with $11.3 billion of liquidity. May said the airline expects to produce positive free cash flow for the full year at the midpoint of its current guidance and to end 2026 with lower net debt than at the start of the year. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Sky Wars: United's Predator Play for American Fuel was the central challenge discussed on the call. May said second-quarter fuel expense increased more than $2.2 billion, or 83%, from a year earlier. He said fuel forecasts had worsened quickly in recent weeks, with expected third-quarter fuel expense rising more than $700 million since the beginning of July and nearly $230 million in the prior week alone. Based on the forward curve as of July 21, American expects an average fuel price of about $3.75 per gallon in the third quarter, which would result in a $1.7 billion year-over-year increase in fuel expense for the quarter. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off As a result, American now expects third-quarter capacity to rise 3% to 5% year-over-year, about two percentage points lower at the midpoint than originally planned. May said the company will continue to evaluate capacity based on fuel prices and demand trends. The airline guided to a third-quarter adjusted loss per diluted share of $0.70 to $0.10. For the full year, American adjusted its guidance to a range between a loss of $0.65 and a profit of $0.65 per diluted share. Isom said the company expects full-year adjusted earnings to be breakeven at the midpoint despite an anticipated nearly $6 billion year-over-year fuel headwind. Chief Commercial Officer Nat Pieper said total revenue increased 16.3% year-over-year in the quarter, reaching the high end of the airline’s initial guidance. He said all geographic regions exceeded the company’s initial expectations. Domestic unit revenue increased nearly 11%, with Washington National, Dallas Fort Worth and Los Angeles cited as standouts. Atlantic unit revenue rose about 9%, led by London. Pacific unit revenue increased 15%, with Japan described as noteworthy. Latin America unit revenue rose about 7%, supported by a recovery in Mexico beach demand. Pieper said customer experience metrics also improved. Total Net Promoter Score increased five points year-over-year, and for on-time flights, NPS improved for the 15th time in 17 months. He also cited a 7% year-over-year improvement in the ACSI survey. The airline plans to install Starlink high-speed Wi-Fi on its fleet beginning in 2027. Pieper said connectivity is increasingly important to customers and that such investments strengthen American’s competitive position. American emphasized premium demand as a key driver of its strategy. Pieper said premium unit revenue increased more than 13% year-over-year, driven by strong leisure and corporate demand. Main cabin unit revenue increased nearly 9% and accelerated during the quarter. In response to an analyst question, Pieper said premium revenue rose 19% in the quarter, compared with a 15% increase in non-premium revenue. He said premium accounts for nearly half of ticketed revenue on roughly 30% of seats. He also said nearly 60% of American’s revenue comes from households earning $150,000 or more, which he described as demand more likely to hold up during economic uncertainty. The airline is expanding premium capacity through new Boeing 787-9 and Airbus A321XLR deliveries, as well as retrofit programs on 777-300ER, 777-200ER, A320 and A319 aircraft. Pieper said lie-flat and premium economy capacity grew nearly twice as fast as main cabin capacity during the quarter. Corporate demand was another area of strength. Pieper said managed corporate revenue rose 26% from a year earlier, marking the fifth consecutive quarter of double-digit growth. In response to a media question about Southwest Airlines’ efforts to attract corporate customers, Pieper said American’s managed corporate revenue, small and medium business product and travel management company business were all growing, adding, “We’re not losing it.” The AAdvantage loyalty program also posted growth. Pieper said enrollments increased more than 30% year-over-year in the second quarter, surpassing the record growth achieved in the first quarter. He said the largest enrollment gains occurred in New York City, Chicago and Los Angeles, with international growth also strong. Co-branded card spending across American’s Citi portfolio grew 8% year-over-year. American executives said the airline is focused on improving hub performance and selectively growing its network. Pieper said a new bank structure at Dallas Fort Worth, implemented in April, has reduced systemwide misconnects by nearly 25% year-over-year and helped DFW unit revenue outperform the system average by about four points. The airline also launched new routes from Philadelphia to Budapest and Prague, and from Dallas Fort Worth to Athens. Pieper said American resumed service to Venezuela with flights to Caracas and Maracaibo, describing the airline as the first U.S. carrier to do so. May said American expects to take delivery of 48 new aircraft this year and continues to expect about $4 billion in capital expenditures for 2026. In response to an analyst question, he said 2027 capital expenditures are likely to be around $4.5 billion, while noting that some delivery schedules later in the decade still need smoothing. On the balance sheet, May said American completed about $1.3 billion in incremental financings during the second quarter, bolstering liquidity and addressing its only meaningful 2027 maturity. He said the company’s longer-term goals remain reducing total debt to inside $35 billion, bringing net debt well inside $30 billion and achieving a double-B credit rating, which would require net debt to EBITDA inside three turns. Isom closed by saying American remains focused on execution, customer service and long-term value creation. He said the company still has work to do but is seeing momentum from its strategy and expects additional progress in 2027 and beyond. American Airlines Group Inc is a leading global airline holding company headquartered in Fort Worth, Texas. Formed in December 2013 through the merger of AMR Corporation (parent of American Airlines) and US Airways Group, the company operates one of the world's largest passenger and cargo networks. Its subsidiaries include American Airlines, which provides mainline service, and American Eagle, a network of regional carriers operating short- and medium-haul routes on behalf of the mainline carrier. The company offers scheduled air transportation for passengers and cargo to more than 350 destinations in over 50 countries. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "American Airlines Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Revenue Growth: Increased by 16.3% year-over-year. Fuel Expense: Increased by over $2.2 billion or 83% year-over-year. Available Liquidity: Over $11 billion at the end of the second quarter. Domestic Unit Revenue: Increased nearly 11% year-over-year. Atlantic Unit Revenue: Up approximately 9% year-over-year. Pacific Unit Revenue: Increased 15% year-over-year. Latin America Unit Revenue: Up approximately 7% year-over-year. Premium Unit Revenue: Increased more than 13% year-over-year. Corporate Revenue: Managed corporate revenue up 26% over the prior year. AAdvantage Program Enrollments: Increased more than 30% year-over-year. Third Quarter Fuel Price Expectation: Approximately $3.75 per gallon. Third Quarter Capacity Expectation: Up 3% to 5% year-over-year. Third Quarter CASM-ex Expectation: Increase 2.5% to 4.5% year-over-year. Third Quarter Revenue Growth Expectation: 16% to 19% year-over-year. Full Year Capital Expenditures: Approximately $4 billion. Liquidity at Quarter End: $11.3 billion. Warning! GuruFocus has detected 3 Warning Sign with AAL. Is AAL fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. American Airlines Group Inc (NASDAQ:AAL) achieved record quarterly revenue with a year-over-year growth of more than 16%, reflecting the strength of their commercial strategy. The company ended the second quarter with over $11 billion in available liquidity, showcasing strong financial management. Premium revenue continues to outpace non-premium, with significant growth in corporate revenue, indicating strong demand for premium services. The AAdvantage program saw enrollments grow at record rates, with a 30% year-over-year increase, highlighting customer loyalty and engagement. Operational improvements and enhancements in customer experience, such as new lounges and upgraded aircraft, have been well-received, contributing to higher customer satisfaction scores. Fuel expenses increased by over $2.2 billion year-over-year, posing a significant financial challenge. Despite strong revenue performance, the company anticipates a full-year adjusted earnings breakeven at the midpoint of their guidance range due to high fuel costs. The third quarter capacity is expected to be lower than originally planned due to elevated fuel prices, impacting growth potential. The company faces ongoing challenges in closing the revenue gap with competitors, particularly in terms of margin performance. There is concern over the volatility of fuel prices, which has led to adjustments in financial forecasts and capacity planning. Q: Why isn't American Airlines cutting capacity despite the volatile fuel prices? A: Robert Isom, CEO, explained that the company is matching its network and capacity to the demand environment. They have made adjustments for the third quarter and are evaluating the fourth quarter, emphasizing that American Airlines is quick to react to market conditions. Q: What is the outlook for capital expenditures over the next few years? A: Devon May, CFO, stated that the company expects around $4 billion in capital expenditures this year, with a slight increase to about $4.5 billion next year. Deliveries have been sliding out, and there is a need for smoothing in the back half of the decade. Q: How is American Airlines addressing the margin gap with competitors like Delta and United? A: Robert Isom highlighted that American Airlines is focusing on improving its balance sheet, managing costs effectively, and enhancing revenue through commercial strategies. He noted that while labor costs are a component, the real upside lies in revenue production. Q: Can you elaborate on the premium strategy and its impact on revenue? A: Nathaniel Pieper, Chief Commercial Officer, mentioned that premium traffic continues to outpace the rest of the business, with premium revenue up 19% in the quarter. The company is investing in premium products and configurations to capture demand, with nearly 60% of revenue coming from households earning $150,000 or more. Q: How is American Airlines planning to grow its international presence? A: Robert Isom stated that the company is leveraging its North American hubs to serve major business markets globally. They are focusing on joint business partnerships and utilizing a flexible fleet to expand into secondary cities, supported by new aircraft deliveries and retrofits. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

American Airlines (AAL) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.03 per share. This compares to earnings of $0.95 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +400.00%. A quarter ago, it was expected that this world's largest airline would post a loss of $0.45 per share when it actually produced a loss of $0.4, delivering a surprise of +11.11%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. American Airlines, which belongs to the Zacks Transportation - Airline industry, posted revenues of $16.74 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.22%. This compares to year-ago revenues of $14.39 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. American Airlines shares have lost about 3.5% since the beginning of the year versus the S&P 500's gain of 9.6%. While American Airlines has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for American Airlines was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.31 on $15.86 billion in revenues for the coming quarter and $0.57 on $62.71 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Airline is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Allegiant Travel (ALGT), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This travel services company is expected to post quarterly earnings of $1.27 per share in its upcoming report, which represents a year-over-year change of +3.3%. The consensus EPS estimate for the quarter has been revised 103.3% higher over the last 30 days to the current level. Allegiant Travel's revenues are expected to be $1.03 billion, up 49.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research