Global Airlines Mostly Resolve Airbus Jet Problem, According to Reuters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 30 2025
0mins
Should l Buy AAL?
- Software Glitch Resolved: Airlines worldwide have addressed a software glitch affecting Airbus A320 jets through a partial recall, with many completing necessary updates.
- Minimal Operational Impact: Major airlines, including American Airlines, United Airlines, and Delta Air Lines, reported no significant impact on their operations following the updates.
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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: 14.350
Low
10.00
Averages
17.44
High
21.00
Current: 14.350
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.
- Union Protests Escalate: The flight attendants' union at American Airlines plans to hold a protest outside the company's headquarters, demanding new leadership, reflecting employee dissatisfaction with CEO Robert Isom, particularly as the company lags behind competitors in profitability and punctuality.
- Profit Expectations Improve: Isom mentioned in a video that the company anticipates a significant profit increase this year, with adjusted earnings per share potentially reaching $2.70, a substantial rise from last year's $0.36, indicating efforts to enhance financial performance.
- Schedule and Service Enhancements: American Airlines is adjusting its schedules, particularly at Dallas-Fort Worth International Airport, to improve flight punctuality, although its current 73.7% on-time rate ranks it low in the industry, highlighting the urgency to enhance customer experience.
- Employee Morale Declines: The decline in profits has led to a smaller profit-sharing pool for employees, causing disappointment among staff, with the union stating that the airline needs stronger accountability and decisive action to maintain competitiveness.
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- Employee Protest: American Airlines flight attendants are set to picket at the corporate headquarters in Fort Worth, Texas, to exert pressure on CEO Robert Isom amid concerns over lagging profitability compared to rivals, indicating significant employee dissatisfaction with leadership.
- Profit Expectations vs. Employee Confidence: Despite Isom's assertion in a video that the airline expects a substantial profit increase this year, with adjusted earnings per share potentially reaching $2.70, employee frustration remains high regarding the company's reliability and financial performance, particularly following difficulties in recovery from major winter storms.
- Union Vote of No Confidence: The Association of Professional Flight Attendants issued a vote of no confidence in Isom, marking the first such action by the union, which underscores strong employee discontent with leadership, especially as the airline trails Delta and United in profitability and punctuality.
- Future Development Strategy: In a meeting with about 6,000 managers, Isom emphasized the airline's goals for the next 100 years, and despite facing employee protests and profit pressures, he remains committed to enhancing market competitiveness through upgraded cabin facilities and expanded airport lounges.
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- Protest Planned: The APFA, representing over 28,000 American Airlines flight attendants, will hold a protest on Thursday demanding accountability and leadership change due to management failures leading to declining performance and worsening working conditions.
- No Confidence Vote: Following a historic no-confidence vote against CEO Robert Isom, union leaders highlighted that management decisions and ongoing industry ranking declines have burdened both workers and passengers, calling for executive accountability.
- Intensifying Financial Woes: For fiscal 2025, American Airlines reported only a 0.8% year-on-year increase in operating revenue, while operating profit and net profit plummeted nearly 45% and 87%, respectively, primarily due to high costs and disruptions, including a $325 million impact from the government shutdown.
- Stock Price Decline: Over the past year, American Airlines' stock has fallen by 11.75%, with a 4.97% drop on Wednesday, closing at $14.35, reflecting market concerns regarding the company's future performance.
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- Flight Grounding Incident: The FAA abruptly grounded all flights at El Paso International Airport for 10 days due to 'special security' instructions, although the order was lifted hours later, indicating the urgency and complexity of the security issue.
- Unspecified Security Reasons: The FAA did not immediately clarify the specific security reasons for the grounding, while the airport's proximity to Biggs Army Airfield and the Mexican border suggests potential security threats, despite local officials stating there is no immediate threat to the community.
- Widespread Flight Impact: El Paso International Airport served nearly 3.5 million passengers in the first 11 months of 2025, with 1,314 scheduled departures this month, prompting airlines like United and Southwest to offer rebooking options for affected travelers, demonstrating a commitment to customer safety.
- Strong Political Response: Texas Representative Veronica Escobar described the FAA's action as 'unprecedented' and noted the lack of advance notice to local government and airport operations, urging the FAA to lift the temporary flight restrictions, reflecting concerns over the transparency of security measures.
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- Unexplained Flight Ban: The FAA has abruptly grounded all flights at El Paso International Airport for 10 days due to 'special security' instructions, with specific security reasons not disclosed, potentially impacting airport operations and passenger travel.
- Flight Restriction Area: The flight ban applies to a 10-nautical-mile radius around the airport, meaning not only are flights at the airport affected, but surrounding airspace operations will also be restricted, likely leading to delays and cancellations that could impact airline revenues.
- Passenger Traffic Context: El Paso International Airport served over 3 million passengers in the first 11 months of 2025, with major airlines including Southwest, Delta, American, United, and Frontier, indicating that the flight ban could significantly affect these airlines' operations and financial performance.
- Security Concerns Raised: Given the airport's proximity to Biggs Army Airfield and the Mexican border, the security issue has raised concerns, with the Pentagon referring inquiries to the FAA, suggesting that the security situation in the area may be complex.
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- Flight Suspension: The FAA announced a halt on all commercial, cargo, and general aviation flights at El Paso International Airport for 10 days starting February 11 at 1:30 AM ET, affecting approximately 1,299 scheduled flights, which translates to about 46 flights daily, causing significant disruptions for airlines and travelers.
- Security Reasons: The FAA stated that the flight suspension is due to 'special security reasons' and warned that 'deadly force' could be used against any aircraft violating the restrictions, indicating a serious security situation in the area.
- Affected Airlines: All airlines operating flights to and from El Paso, including Delta Air Lines, American Airlines, Southwest Airlines, and United Airlines, are impacted by this suspension, prompting travelers to contact their airlines for the latest flight status updates.
- Local Reaction: Texas State Representative Vincent Perez expressed his unawareness of the FAA's halt, noting that it is unprecedented for American airspace to be shut down for 10 days without a major emergency, highlighting the unusual nature of this event.
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