American Airlines (AAL) Sidesteps Travel Disruptions as Airbus Repairs Conclude
Written by Emily J. Thompson, Senior Investment Analyst
Source: TipRanks
Updated: Dec 01 20250mins
Software Recall Update: American Airlines has successfully updated nearly all of its Airbus A320 jets following a major software recall, with only one aircraft remaining to be fixed. This is a significant reduction from the initial estimate of 340 affected jets.
Impact on Travel: Despite concerns about potential travel disruptions during the busy Thanksgiving period, American Airlines expects normal operations to continue, alleviating fears of delays for travelers.
Industry Context: The recall was prompted by Airbus's announcement that around 6,000 A320 aircraft worldwide required urgent software fixes due to a flight-control system risk.
Investor Confidence: The resolution of the software issue has eased uncertainty for investors, with American Airlines receiving a consensus Moderate Buy rating from analysts, indicating potential stock price growth.
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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 14.82 USD with a low forecast of 10.00 USD and a high forecast of 20.00 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.
12 Analyst Rating
4 Buy
7 Hold
1 Sell
Hold
Current: 14.340
Low
10.00
Averages
14.82
High
20.00
Current: 14.340
Low
10.00
Averages
14.82
High
20.00
Citi
John Godyn
initiated
$19
2025-12-04
New
Reason
Citi
John Godyn
Price Target
$19
2025-12-04
New
initiated
Reason
Citi analyst John Godyn initiated coverage of American Airlines with a Buy rating and $19 price target. The firm believes the setup is positive for the airlines with an "elongated mid-cycle" beginning in 2026. Citi sees the largest beneficiaries as being the "supermajors." The large airlines offer the most favorable risk/reward, the analyst tells investors in a research note. On the other side, Citi believes the legacy low-cost carriers will be underperformers through the cycle.
JPMorgan
Dominic O'Kane
Neutral
maintain
2025-12-03
New
Reason
JPMorgan
Dominic O'Kane
Price Target
2025-12-03
New
maintain
Neutral
Reason
JPMorgan analyst Dominic O'Kane raised the firm's price target on Anglo American to 3,220 GBp from 2,760 GBp and keeps a Neutral rating on the shares.
TD Cowen
NULL -> Buy
upgrade
$13 -> $18
2025-10-27
Reason
TD Cowen
Price Target
$13 -> $18
2025-10-27
upgrade
NULL -> Buy
Reason
TD Cowen raised the firm's price target on American Airlines to $18 from $13 and keeps a Buy rating on the shares.
UBS
Neutral
maintain
$13 -> $14
2025-10-24
Reason
UBS
Price Target
$13 -> $14
2025-10-24
maintain
Neutral
Reason
UBS raised the firm's price target on American Airlines to $14 from $13 and keeps a Neutral rating on the shares.
See All Ratings
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
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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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