Rothschild Downgrades American Airlines Amid Rising Fuel Costs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 05 2026
0mins
Should l Buy AAL?
Source: CNBC
American Airlines Group's stock fell 3.52% and hit a 20-day low amid broader market declines, with the Nasdaq-100 down 0.67% and the S&P 500 down 0.91%.
The decline follows Rothschild's downgrade of American Airlines from Buy to Neutral, citing increased sensitivity to rising fuel costs due to the ongoing U.S.-Iran conflict. Analyst James Goodall lowered the price target from $17 to $12.5 per share, predicting that a 10-cent rise in fuel prices could reduce earnings per share by nearly 25%. This pessimistic outlook reflects significant challenges for the airline, which has seen its shares drop 19% this year.
The airline industry faces heightened pressures from fuel costs, and American Airlines' recent performance indicates a need for strategic adjustments. Investors will be closely monitoring the company's response to these challenges and any potential recovery in profitability.
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Analyst Views on AAL
Wall Street analysts forecast AAL stock price to rise
15 Analyst Rating
7 Buy
7 Hold
1 Sell
Moderate Buy
Current: 10.180
Low
11.00
Averages
17.93
High
22.00
Current: 10.180
Low
11.00
Averages
17.93
High
22.00
About AAL
American Airlines Group Inc. is a holding company. Its primary business activity is the operation of a major network air carrier, providing scheduled air transportation for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. and partner gateways, including in London, Doha, Madrid, Seattle/Tacoma, Sydney and Tokyo, among others. Together with its regional airline subsidiaries and third-party regional carriers operating as American Eagle. Its cargo division provides a wide range of freight and mail services, with facilities and interline connections available across the globe. It operates approximately 977 mainline aircraft supported by its regional airline subsidiaries and third-party regional carriers, which together operate an additional 585 regional aircraft. Its subsidiaries include American Airlines, Inc., Envoy Aviation Group Inc., PSA Airlines, Inc. and Piedmont Airlines, Inc.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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