American Airlines Names Gregory D. Smith to Its Board of Directors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 18 2022
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Should l Buy AAL?
Source: globenewswire
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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: 10.740
Low
11.00
Averages
17.93
High
22.00
Current: 10.740
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.
American Airlines Faces Inflation Pressure, Target Price Cut
- Analyst Rating Maintained: Evercore ISI analyst Duane Pfennigwerth has maintained an In-Line rating on American Airlines Group Inc. (NASDAQ:AAL) while cutting the price target from $17 to $14, reflecting pressure on the airline's outlook due to rising fuel costs.
- Surging Fuel Costs: As of March 11, spot jet fuel prices were approximately 53% above the first-quarter average, with Evercore describing the latest dislocation in airline inputs as a '2.8-sigma event,' comparable to periods like 2008 and the early phase of the Ukraine war.
- Revenue Guidance Adjustment: On January 27, American Airlines indicated that its first-quarter 2026 guidance reflected the impact of Winter Storm Fern, estimating a revenue hit between $150 million and $200 million, alongside a roughly 1.5-point increase in CASM-ex.
- Increased Financial Pressure: Although American Airlines raised its first-quarter revenue outlook to over 10% growth on March 17, fuel volatility has created an estimated $400 million expense hit, pushing expected results toward the lower end of its prior loss guidance.
See More
U.S. Senate Passes Funding Bill for Homeland Security
- Government Shutdown Risk Mitigated: The U.S. Senate's passage of the Homeland Security funding bill paves the way to end a prolonged partial government shutdown, although it still requires approval from the House and President Trump, marking a shift in Republican resistance to similar Democratic proposals over the past weeks.
- Airport Security Impact: The lack of funding has led to TSA workers calling in sick or resigning due to unpaid wages, resulting in long security lines at airports, particularly in major hubs like Atlanta, Houston, and New York, where wait times have extended and lines have stretched outside terminals.
- Staffing Crisis: With DHS lacking regular funding since February 14, over 480 TSA employees have quit during the funding lapse, exacerbating security check pressures at airports and negatively impacting passenger travel experiences.
- Immigration Policy Controversy: Democrats previously sought to exclude funding for Border Patrol and Immigration and Customs Enforcement from the bill, attempting to tie funding for these agencies to stricter immigration policies, highlighting deep divisions within Congress regarding immigration issues.
See More
Trump Signs Order to Pay TSA Officers Amid Shutdown
- Order Signing: President Trump plans to sign an order directing the Secretary of Homeland Security to immediately pay TSA officers, aiming to alleviate airport disruptions caused by the congressional deadlock, demonstrating government flexibility in crisis management.
- Funding Source: According to a senior official, the payments will be funded through Trump's 2025 tax and spending bill, similar to last year's approach to pay military personnel, indicating the government's adaptability in crisis response.
- Legal Challenge Risks: This move bypasses the regular congressional funding process and could face legal challenges, reflecting the complexities and potential political risks involved in government operations.
- Impact and Context: With TSA officers unpaid for weeks amid the funding standoff at the Department of Homeland Security, staffing shortages and longer wait times at airport checkpoints have emerged, further exacerbating economic pressures linked to rising energy prices from the Iran conflict.
See More
American Airlines in Talks with SpaceX and Amazon for In-Flight Services Revamp
- Service Upgrade: American Airlines is in discussions with SpaceX's Starlink and Amazon to revamp in-flight internet and entertainment services, aiming to enhance customer experience in response to competitive pressures from rivals.
- Seatback Screens Return: The airline is seriously considering reintroducing seatback screens on its narrow-body fleet, with a decision potentially coming as soon as next month, which would significantly improve passenger entertainment options and overall service quality.
- Content Collaboration: In addition to Wi-Fi services, American is exploring content partnerships with Amazon, including Amazon Prime and music, and may allow customers to use miles for shopping, further enhancing customer loyalty.
- Increased Competitive Pressure: With Delta Air Lines and United Airlines investing heavily in onboard products for years, American's plans aim to close the gap with industry leaders and increase its market share amidst growing competition.
See More
AMERICAN AIRLINES MAY REINTRODUCE SEATBACK SCREENS IN ITS NARROW-BODY FLEET - CNBC
American Airlines' Consideration: American Airlines is contemplating the addition of seatback screens to its narrow-body fleet.
Focus on Passenger Experience: The move aims to enhance the in-flight experience for passengers by providing more entertainment options.
See More
American Airlines Negotiates with SpaceX's Starlink and Amazon to Enhance In-Flight Internet and Entertainment - CNBC
American Airlines Collaborations: American Airlines is in discussions with SpaceX's Starlink to enhance in-flight internet services.
Amazon's Role: Amazon is also involved in revamping in-flight internet and entertainment options, indicating a competitive landscape in this sector.
See More
American Airlines Faces Inflation Pressure, Target Price Cut
- Analyst Rating Maintained: Evercore ISI analyst Duane Pfennigwerth has maintained an In-Line rating on American Airlines Group Inc. (NASDAQ:AAL) while cutting the price target from $17 to $14, reflecting pressure on the airline's outlook due to rising fuel costs.
- Surging Fuel Costs: As of March 11, spot jet fuel prices were approximately 53% above the first-quarter average, with Evercore describing the latest dislocation in airline inputs as a '2.8-sigma event,' comparable to periods like 2008 and the early phase of the Ukraine war.
- Revenue Guidance Adjustment: On January 27, American Airlines indicated that its first-quarter 2026 guidance reflected the impact of Winter Storm Fern, estimating a revenue hit between $150 million and $200 million, alongside a roughly 1.5-point increase in CASM-ex.
- Increased Financial Pressure: Although American Airlines raised its first-quarter revenue outlook to over 10% growth on March 17, fuel volatility has created an estimated $400 million expense hit, pushing expected results toward the lower end of its prior loss guidance.
See More
U.S. Senate Passes Funding Bill for Homeland Security
- Government Shutdown Risk Mitigated: The U.S. Senate's passage of the Homeland Security funding bill paves the way to end a prolonged partial government shutdown, although it still requires approval from the House and President Trump, marking a shift in Republican resistance to similar Democratic proposals over the past weeks.
- Airport Security Impact: The lack of funding has led to TSA workers calling in sick or resigning due to unpaid wages, resulting in long security lines at airports, particularly in major hubs like Atlanta, Houston, and New York, where wait times have extended and lines have stretched outside terminals.
- Staffing Crisis: With DHS lacking regular funding since February 14, over 480 TSA employees have quit during the funding lapse, exacerbating security check pressures at airports and negatively impacting passenger travel experiences.
- Immigration Policy Controversy: Democrats previously sought to exclude funding for Border Patrol and Immigration and Customs Enforcement from the bill, attempting to tie funding for these agencies to stricter immigration policies, highlighting deep divisions within Congress regarding immigration issues.
See More
Trump Signs Order to Pay TSA Officers Amid Shutdown
- Order Signing: President Trump plans to sign an order directing the Secretary of Homeland Security to immediately pay TSA officers, aiming to alleviate airport disruptions caused by the congressional deadlock, demonstrating government flexibility in crisis management.
- Funding Source: According to a senior official, the payments will be funded through Trump's 2025 tax and spending bill, similar to last year's approach to pay military personnel, indicating the government's adaptability in crisis response.
- Legal Challenge Risks: This move bypasses the regular congressional funding process and could face legal challenges, reflecting the complexities and potential political risks involved in government operations.
- Impact and Context: With TSA officers unpaid for weeks amid the funding standoff at the Department of Homeland Security, staffing shortages and longer wait times at airport checkpoints have emerged, further exacerbating economic pressures linked to rising energy prices from the Iran conflict.
See More
American Airlines in Talks with SpaceX and Amazon for In-Flight Services Revamp
- Service Upgrade: American Airlines is in discussions with SpaceX's Starlink and Amazon to revamp in-flight internet and entertainment services, aiming to enhance customer experience in response to competitive pressures from rivals.
- Seatback Screens Return: The airline is seriously considering reintroducing seatback screens on its narrow-body fleet, with a decision potentially coming as soon as next month, which would significantly improve passenger entertainment options and overall service quality.
- Content Collaboration: In addition to Wi-Fi services, American is exploring content partnerships with Amazon, including Amazon Prime and music, and may allow customers to use miles for shopping, further enhancing customer loyalty.
- Increased Competitive Pressure: With Delta Air Lines and United Airlines investing heavily in onboard products for years, American's plans aim to close the gap with industry leaders and increase its market share amidst growing competition.
See More
AMERICAN AIRLINES MAY REINTRODUCE SEATBACK SCREENS IN ITS NARROW-BODY FLEET - CNBC
American Airlines' Consideration: American Airlines is contemplating the addition of seatback screens to its narrow-body fleet.
Focus on Passenger Experience: The move aims to enhance the in-flight experience for passengers by providing more entertainment options.
See More
American Airlines Negotiates with SpaceX's Starlink and Amazon to Enhance In-Flight Internet and Entertainment - CNBC
American Airlines Collaborations: American Airlines is in discussions with SpaceX's Starlink to enhance in-flight internet services.
Amazon's Role: Amazon is also involved in revamping in-flight internet and entertainment options, indicating a competitive landscape in this sector.
See More
