Airline Earnings Highlight Diverging Trends in Aviation ETFs
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Mixed Earnings Reports: American Airlines Group (AAL) missed fourth-quarter earnings expectations but projects a 7% to 10% revenue growth for 2026, with a first-quarter loss expected to hit $150 million to $200 million due to Winter Storm Fern, indicating ongoing climate impacts on the airline industry.
- JetBlue's Operational Struggles: JetBlue Airways (JBLU) achieved $305 million in incremental EBIT through its JetForward strategy in 2025, yet rising unit costs and increased leverage led to wider losses, highlighting the significant challenges faced by low-cost carriers in the current environment.
- ETF Performance Volatility: The U.S. Global Jets ETF (JETS) fell by 1.48%, reflecting the widening gap between airline performances, emphasizing the importance of carrier selection for investors in aviation-focused ETFs amid mixed results.
- Long-Term Optimism: Despite short-term turbulence, American Airlines remains optimistic about long-term fundamentals, anticipating accelerated demand for premium seating, with projections indicating a more than 50% increase in lie-flat seats by 2030, positively impacting diversified transportation funds.
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Analyst Views on AAL
Wall Street analysts forecast AAL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAL is 17.44 USD with a low forecast of 10.00 USD and a high forecast of 21.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
7 Buy
7 Hold
1 Sell
Moderate Buy
Current: 13.440
Low
10.00
Averages
17.44
High
21.00
Current: 13.440
Low
10.00
Averages
17.44
High
21.00
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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