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American Airlines: Back In The Game

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  • American Airlines delivered a major Q1'26 guide-up, projecting revenue up 10% and a loss per share far better than consensus.
  • AAL demonstrates resilience, absorbing $400M in higher fuel costs and outperforming expectations despite geopolitical and commodity headwinds.
  • The airlines continues to drive the updated loyalty program towards $1.5B in additional pre-tax income by 2030, roughly double current levels.
  • The stock trades at just 5x EPS targets that should reach $2, a valuation deeply discounted versus peers.
In a major surprise, American Airlines Group Inc. (AAL) guided to far better than expected Q1'26 numbers. The airlines were expected to struggle this quarter due to the Iranian conflict and surging oil prices. My investment thesis remains ultra Bullish on the stock trading at the lows near $10 after dipping from $16.


Read the full article on Seeking Alpha. 

Disclosure: Long AAL. Please review the disclaimer page for more details. 

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