Q3 EPS Forecast for American Airlines Group Cut by Analyst

Key Points

• Q3 2026 EPS forecast lowered: Zacks Research cut its estimate for American Airlines Group to a loss of $0.17 per share from a loss of $0.11, while maintaining a “Strong-Buy” rating. The firm forecasts a $0.32-per-share loss for full-year 2026 but expects profitability in 2027 and 2028.
• Analyst sentiment remains mixed: Price targets range from $13 to $25, resulting in a consensus “Hold” rating and average target price of $19.03.
• Stock and ownership developments: AAL opened at $14.83, with a market value of approximately $9.82 billion, while insiders sold 205,044 shares worth $3.4 million during the last quarter. Institutional investors own 52.44% of the company.

American Airlines Group Inc. (NASDAQ:AAL - Free Report) - Analysts at Zacks Research dropped their Q3 2026 earnings per share (EPS) estimates for shares of American Airlines Group in a research note issued to investors on Thursday, August 13th. Zacks Research analyst Team now anticipates that the airline will post earnings of ($0.17) per share for the quarter, down from their prior forecast of ($0.11). Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for American Airlines Group's current full-year earnings is $0.03 per share. Zacks Research also issued estimates for American Airlines Group's Q4 2026 earnings at $0.09 EPS, FY2026 earnings at ($0.32) EPS, Q1 2027 earnings at ($0.05) EPS, Q2 2027 earnings at $0.43 EPS, Q4 2027 earnings at $0.47 EPS, FY2027 earnings at $1.22 EPS, Q2 2028 earnings at $0.52 EPS and FY2028 earnings at $2.35 EPS.

Several other brokerages also recently weighed in on AAL. Susquehanna lifted their price objective on shares of American Airlines Group from $16.00 to $25.00 and gave the company a "positive" rating in a research report on Tuesday, July 7th. BMO Capital Markets dropped their price target on shares of American Airlines Group from $19.50 to $19.00 and set a "market perform" rating on the stock in a research note on Friday, July 24th. Citigroup cut their price target on American Airlines Group from $22.00 to $19.00 and set a "buy" rating on the stock in a report on Friday, July 24th. Sanford C. Bernstein increased their price objective on American Airlines Group from $20.00 to $23.00 and gave the stock a "market outperform" rating in a report on Wednesday, July 1st. Finally, The Goldman Sachs Group lowered their target price on American Airlines Group from $15.00 to $13.00 and set a "sell" rating on the stock in a research report on Friday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $19.03.

American Airlines Group Stock Performance

American Airlines Group stock opened at $14.83 on Monday. The company has a 50-day simple moving average of $15.87 and a 200-day simple moving average of $13.70. The firm has a market capitalization of $9.82 billion, a P/E ratio of -30.27 and a beta of 1.34. American Airlines Group has a one year low of $10.09 and a one year high of $18.79.

American Airlines Group (NASDAQ:AAL - Get Free Report) last issued its earnings results on Thursday, July 23rd. The airline reported $0.15 earnings per share for the quarter, topping the consensus estimate of $0.03 by $0.12. The firm had revenue of $16.73 billion for the quarter, compared to analyst estimates of $16.70 billion. American Airlines Group had a negative return on equity of 9.11% and a negative net margin of 0.56%.The firm's revenue for the quarter was up 16.3% on a year-over-year basis. During the same period last year, the company earned $0.95 earnings per share. American Airlines Group has set its Q3 2026 guidance at -0.700--0.100 EPS and its FY 2026 guidance at -0.650-0.650 EPS.

Insiders Place Their Bets

In other news, SVP Angela Owens sold 40,077 shares of the stock in a transaction on Friday, July 31st. The stock was sold at an average price of $15.26, for a total transaction of $611,575.02. Following the completion of the sale, the senior vice president owned 178,799 shares in the company, valued at approximately $2,728,472.74. This represents a 18.31% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO David Seymour sold 56,456 shares of the firm's stock in a transaction on Thursday, June 25th. The stock was sold at an average price of $18.00, for a total value of $1,016,208.00. Following the sale, the chief operating officer directly owned 969,033 shares of the company's stock, valued at approximately $17,442,594. This represents a 5.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 205,044 shares of company stock valued at $3,407,451 in the last quarter. Insiders own 0.70% of the company's stock.

Hedge Funds Weigh In On American Airlines Group

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Primecap Management Co. CA purchased a new position in shares of American Airlines Group during the second quarter valued at $1,278,144,000. BlackRock Inc. purchased a new stake in American Airlines Group in the 2nd quarter worth about $1,144,739,000. Renaissance Technologies LLC lifted its stake in American Airlines Group by 569.4% in the 1st quarter. Renaissance Technologies LLC now owns 9,687,232 shares of the airline's stock worth $104,041,000 after acquiring an additional 8,240,100 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of American Airlines Group during the second quarter worth approximately $119,628,000. Finally, Two Sigma Investments LP boosted its holdings in shares of American Airlines Group by 49.1% during the third quarter. Two Sigma Investments LP now owns 13,670,800 shares of the airline's stock worth $153,660,000 after purchasing an additional 4,500,897 shares during the period. Institutional investors and hedge funds own 52.44% of the company's stock.

More American Airlines Group News

Here are the key news stories impacting American Airlines Group this week:

• Positive Sentiment: Sustainable aviation fuel milestone: American completed a commercial passenger flight using electro-sustainable aviation fuel (eSAF) produced by Infinium. The achievement supports the airline’s lower-carbon fuel strategy, while Project Roadrunner is expected to begin production and deliveries in 2027. The development could improve American’s environmental positioning and help secure future access to lower-carbon fuel, though near-term financial benefits remain limited. American Airlines Advances Sustainable Aviation Fuel Adoption
• Positive Sentiment: Valuation support: One market analysis argues that AAL could be about 21% undervalued following the eSAF flight milestone. That view provides potential upside, but it is an analyst valuation rather than a change to earnings or cash-flow guidance. American Airlines Group Could Be 21% Undervalued Following eSAF Flight Milestone
• Neutral Sentiment: Mixed earnings revisions: Zacks Research lowered its Q1 2028 EPS estimate to $0.55 from $0.58, but raised its Q3 2027 forecast to $0.36 from $0.35. Zacks maintained a “Strong-Buy” rating, although the mixed revisions highlight uncertainty around the airline’s longer-term profitability.
• Neutral Sentiment: Consumer stocks traded mixed late Friday, offering little direct sector support for American Airlines. The company also launched its 10th annual fundraising campaign with Stand Up To Cancer; the initiative may benefit corporate reputation but is unlikely to materially affect earnings. American Airlines and Stand Up To Cancer Campaign
• Negative Sentiment: Leadership and profitability concerns: CEO Robert Isom reportedly added a former Spirit Airlines executive to senior management as American works to close its profit gap with rivals such as Delta. Surging fuel costs and the need for a reorganization could weigh on investor confidence and reinforce concerns about near-term margins. American Airlines Taps Former Spirit Executive

American Airlines Group Company Profile

American Airlines Group Inc is a leading global airline holding company headquartered in Fort Worth, Texas. Formed in December 2013 through the merger of AMR Corporation (parent of American Airlines) and US Airways Group, the company operates one of the world's largest passenger and cargo networks. Its subsidiaries include American Airlines, which provides mainline service, and American Eagle, a network of regional carriers operating short- and medium-haul routes on behalf of the mainline carrier.

The company offers scheduled air transportation for passengers and cargo to more than 350 destinations in over 50 countries.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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