American Airlines Stock Sinks After Earnings. Here's Why
American Airlines stock is lower Thursday as the air carrier's weak outlook offsets its fourth-quarter earnings and revenue beats. Here, we look at the numbers.


American Airlines (AAL) stock is selling off Thursday as the air carrier's weak outlooks for the first quarter and full year offset its top- and bottom-line fourth-quarter beats.
In the three months ending December 31, American Airlines' revenue increased 4.6% year over year to $13.7 billion. Its earnings per share (EPS) nearly tripled from the year-ago period to 86 cents.
"The American Airlines team achieved a number of important objectives in 2024," said CEO Robert Isom in a statement. "We continue to run a reliable operation, and we are reengineering the business to build an even more efficient airline. That, coupled with our commercial actions, resulted in strong financial performance in the fourth quarter."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
American Airlines' results beat analysts' expectations. Specifically, Wall Street was anticipating revenue of $13.4 billion and earnings of 64 cents per share, according to CNBC.
However, the positive sentiment around the earnings beat faded when AAL provided its outlook. Here's what the company expects to achieve:
Metric | Q1 2025 | FY 2025 |
Revenue growth | 3% to 5% | 4.5% to 7.5% |
Earnings (loss) per share | ($0.20) to ($0.40) | $1.70 to $2.70 |
Analysts were anticipating a loss of just 4 cents per share in the first quarter and earnings of $2.42 per share for the full fiscal year, according to MarketWatch.
Is American Airlines stock a buy, sell or hold?
Heading into Thursday's session, American Airlines was up 37% year over year, outpacing the S&P 500's 27% total return (price change plus dividends). And analysts are generally bullish on the industrial stock.
According to S&P Global Market Intelligence, the average analyst target price for AAL stock is $20.24, representing an upside of nearly 15% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm Jefferies is one of those with a Buy rating on the large-cap stock, along with a $20 price target.
"AAL's strategy concentrates on its short-haul network, comprising 75% of available seat miles (ASMs), with focus on the medium and small markets that can be ideally served by its regional fleet and its pilot scope clause," wrote Jefferies analyst Sheila Kahyaoglu in a January 6 note.
The analyst notes that these markets "offer connectivity to AAL's domestic Sun Belt hubs and enable the international network," which contrasts to America Airlines' network peer strategies that focus on large, coastal hubs.
Kahyaoglu adds that "ongoing corporate share recapture, lower capacity and capital expenditures, and a new credit card deal mean AAL could see significant surprise to the upside in 2025."
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
What Wall Street's CEOs Are Saying About Trump's Tariffs
We're in the thick of earnings season and corporate America has plenty to say about the Trump administration's trade policy.
By Karee Venema
-
The Role of the U.S. Dollar in Retirement: Is It Secure?
Protect your retirement from de-dollarization, because “capital always goes where it is treated best."
By Adam Shell
-
What Wall Street's CEOs Are Saying About Trump's Tariffs
We're in the thick of earnings season and corporate America has plenty to say about the Trump administration's trade policy.
By Karee Venema
-
To Stay on Track for Retirement, Consider Doing This
Writing down your retirement and income plan in an investment policy statement can help you resist letting a bear market upend your retirement.
By Matt Green, Investment Adviser Representative
-
How to Make Changing Interest Rates Work for Your Retirement
Higher (or lower) rates can be painful in some ways and helpful in others. The key is being prepared to take advantage of the situation.
By Phil Cooper
-
When to Sell Your Stock
Knowing when to sell a stock is a major decision investors must make. While there's no one correct answer, we look at some best practices here.
By Charles Lewis Sizemore, CFA
-
Within Five Years of Retirement? Five Things to Do Now
If you're retiring in the next five years, your to-do list should contain some financial planning and, according to current retirees, a few life goals, too.
By Evan T. Beach, CFP®, AWMA®
-
The Home Stretch: Seven Essential Steps for Pre-Retirees
The decade before retirement is the home stretch in the race to quit work — but there are crucial financial decisions to make before you reach the finish line.
By Mike Dullaghan, AIF®
-
Stock Market Today: Great Power Affairs Mesmerize Markets
The U.S. and China are at least talking about talking about tariffs, and investors, traders and speculators are showing a little less fear.
By David Dittman
-
Three Options for Retirees With Concentrated Stock Positions
If a significant chunk of your portfolio is tied up in a single stock, you'll need to make sure it won't disrupt your retirement and legacy goals. Here's how.
By Evan T. Beach, CFP®, AWMA®