Joint Venture Dispute: Delta Air Lines and Aeromexico are seeking to halt a U.S. appeals court order that requires them to dismantle their joint venture for U.S.-Mexico flights, citing significant financial losses and operational disruptions.
USDOT's Competition Concerns: The U.S. Department of Transportation ordered the end of the nearly nine-year-old joint venture due to concerns over anticompetitive effects in the U.S.-Mexico market, which the airlines argue is competitive.
Operational Impact: Delta has already canceled flights to Mexico and may need to cancel more, while Aeromexico faces the challenge of restructuring its operations and staffing in response to the order.
Consumer Benefits at Risk: Delta claims that the termination of the joint venture could lead to the loss of up to $800 million in annual consumer benefits and potential route cancellations, affecting overall market competition.
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
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.
7 Buy
7 Hold
1 Sell
Moderate Buy
Current: 15.020
Low
10.00
Averages
17.44
High
21.00
Current: 15.020
Low
10.00
Averages
17.44
High
21.00
Susquehanna
Christopher Stathoulopoulos
Neutral -> Positive
upgrade
$14 -> $20
2026-01-09
Reason
Susquehanna
Christopher Stathoulopoulos
Price Target
$14 -> $20
AI Analysis
2026-01-09
upgrade
Neutral -> Positive
Reason
Susquehanna analyst Christopher Stathoulopoulos upgraded American Airlines to Positive from Neutral with a price target of $20, up from $14. The firm sees a "constructive fundamental backdrop" for the airlines into fiscal 2026. Select carriers will benefit from brand loyalty and diverse revenue streams, the analyst tells investors in a research note. Susquehanna believes American's revenue initiatives and network tactics will help support margin improvement into fiscal 20027.
Susquehanna
Neutral -> Positive
upgrade
$14 -> $20
2026-01-09
Reason
Susquehanna
Price Target
$14 -> $20
2026-01-09
upgrade
Neutral -> Positive
Reason
Susquehanna upgraded American Airlines to Positive from Neutral with a price target of $20, up from $14.
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Citi
NULL -> Buy
maintain
$19 -> $21
2026-01-07
Reason
Citi
Price Target
$19 -> $21
2026-01-07
maintain
NULL -> Buy
Reason
Citi raised the firm's price target on American Airlines to $21 from $19 and keeps a Buy rating on the shares. The firm updated targets in the airlines group as part of a Q4 earnings preview. Citi's business travel barometer has bottomed, the analyst tells investors in a research note. However, the firm still expects the supermajors to issue "conservative" outlooks for 2026.
TD Cowen
Buy
maintain
$16 -> $19
2026-01-07
Reason
TD Cowen
Price Target
$16 -> $19
2026-01-07
maintain
Buy
Reason
TD Cowen raised the firm's price target on American Airlines to $19 from $16 and keeps a Buy rating on the shares. The firm adjusted targets in the airlines group as part of a Q4 preview. The industry "navigated the shutdown better than expected and demand looks to be entering 2026 with good momentum," the analyst tells investors in a research note.
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.
