Update shared on 08 Nov 2025
Fair value Increased 3.23%American Airlines Group's analyst price target has increased from $14.55 to $15.02. This reflects moderate optimism among analysts amid encouraging industry trends and updated financial estimates.
Analyst Commentary
Recent moves in price targets and recommendations from Street Research reflect a range of perspectives on American Airlines Group's outlook. The following summarizes the key themes raised by analysts in their latest research.
Bullish Takeaways- Bullish analysts have raised price targets in response to improving industry demand and encouraging fare trends, which may offset expense pressures for most airlines.
- Upward revisions to 2026 and 2027 earnings estimates indicate expectations for stronger long-term profitability and above-consensus performance.
- Technology-driven merchandising and product de-commoditization are seen as long-term growth catalysts, helping American Airlines adapt to structural changes within the industry.
- Share price targets remain above previous levels, reflecting moderate optimism around recent execution and evolving financial estimates.
- Some cautious analysts have moved to a more neutral or market perform stance, citing valuation concerns as the stock nears prior target levels.
- There is ongoing skepticism regarding American Airlines’ ability to close the gap with better-positioned peers, as competition remains intense among U.S. carriers.
- Expense pressures continue to be a focal point, with concerns that cost increases could limit margin recovery.
- Analysts highlight a challenging path back to profitability for less-advantaged airlines, suggesting that profits may continue to concentrate among the industry leaders.
What's in the News
- American Airlines is cutting hundreds of corporate jobs, primarily affecting finance, technology, commercial, and communications departments after a quarterly loss. Layoffs are mainly impacting workers in Fort Worth (Bloomberg).
- The Federal Aviation Administration has delayed flights for a third consecutive day due to a government shutdown. This has caused thousands of delays nationwide and is impacting airlines including American Airlines (Reuters).
- A hacker claims to have breached American Airlines, reportedly exposing data from 2 million users, including sensitive personal information such as Social Security numbers and account details (Daily Dark Web).
Valuation Changes
- Consensus Analyst Price Target has risen slightly, moving from $14.55 to $15.02.
- Discount Rate has increased marginally from 12.32% to 12.5%.
- Revenue Growth Expectations have improved modestly, rising from 4.64% to 4.90%.
- Net Profit Margin Forecast has fallen, declining from 3.39% to 2.86%.
- Future P/E Ratio has increased from 6.53x to 7.97x. This reflects updated earnings and valuation projections.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.