Evercore ISI Reiterates In Line Rating on American Airlines (AAL)

Evercore ISI analyst Duane Pfennigwerth reiterated an In Line rating and $17.00 price target on American Airlines (NASDAQ: AAL)

The analyst comments "During 4Q25 American unit revenue declined 2% y/y vs. total unit cost increase of 4% (non-fuel +4%, fuel/gallon +4%) on capacity growth of 4%, leading to a pre-tax margin of 1% from 6% in 4Q24. The government shutdown had a $325m impact on revenue. Total revenue growth of 2.5% would have been ~5% ex shutdown. American earned $0.16 per share, below our $0.20 (Street $0.36) on higher fuel costs ($2.42 / gallon vs. our $2.36). Revenue growth is expected to accelerate to 7-10% in 1Q (from 2.5% in 4Q) while 1Q26 loss per share guidance of -$0.10-0.50 is roughly in-line with our prior -$0.31, as higher revenue (+7-10% on 3-5% capacity growth vs. our prior +6% on +5% capacity growth) offsets higher non-fuel unit cost (+3-5% vs. our +2%). Higher implied unit revenue reflects better demand and a potentially favorable impact from new credit card agreement. More details on this front would likely help underwrite the sequential improvement. Capacity and non-fuel unit cost guidance each include a 1.5 %-pt impact from Winter Storm Fern. FY26 EPS guidance of $1.70-2.70 is ahead of our / street $1.80 / 1.97. Raising FY26 EPS estimate to $2.00 from $1.80."

For an analyst ratings summary and ratings history on American Airlines click here. For more ratings news on American Airlines click here.

Shares of American Airlines closed at $13.55 yesterday.

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