Zacks Research Has Bearish Forecast for AAL Q2 Earnings

Key Points

• Zacks Research sharply cut its Q2 2026 EPS estimate for American Airlines Group to $0.06 from $0.69, signaling a much weaker near-term earnings outlook.
• The firm also lowered its FY2026 forecast to a loss of $0.40 per share and projected a Q3 2026 loss, underscoring continued pressure on profitability.
• Despite the bearish near-term revisions, analysts still see a potential recovery later on, with FY2027 EPS estimated at $1.16 and FY2028 EPS at $2.09, though broader sentiment remains only “Hold.”

American Airlines Group Inc. (NASDAQ:AAL - Free Report) - Research analysts at Zacks Research cut their Q2 2026 EPS estimates for shares of American Airlines Group in a note issued to investors on Thursday, May 14th. Zacks Research analyst Team now anticipates that the airline will earn $0.06 per share for the quarter, down from their previous forecast of $0.69. The consensus estimate for American Airlines Group's current full-year earnings is ($0.19) per share. Zacks Research also issued estimates for American Airlines Group's Q3 2026 earnings at ($0.11) EPS, Q4 2026 earnings at $0.05 EPS, FY2026 earnings at ($0.40) EPS, Q1 2027 earnings at $0.31 EPS, Q3 2027 earnings at $0.35 EPS, Q4 2027 earnings at $0.16 EPS, FY2027 earnings at $1.16 EPS, Q1 2028 earnings at $0.58 EPS and FY2028 earnings at $2.09 EPS.

Several other equities research analysts have also recently commented on the stock. Argus raised shares of American Airlines Group to a "hold" rating in a research report on Wednesday, January 28th. Rothschild & Co Redburn reaffirmed a "neutral" rating and issued a $12.50 target price (down from $17.00) on shares of American Airlines Group in a research report on Thursday, March 5th. Citigroup dropped their target price on shares of American Airlines Group from $21.00 to $14.00 and set a "buy" rating for the company in a research report on Friday, March 20th. BMO Capital Markets raised their target price on shares of American Airlines Group from $12.00 to $13.50 and gave the stock a "market perform" rating in a research report on Friday, April 24th. Finally, UBS Group raised their target price on shares of American Airlines Group from $14.00 to $16.00 and gave the stock a "buy" rating in a research report on Wednesday, April 15th. Six investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $14.67.

American Airlines Group Stock Performance

NASDAQ:AAL opened at $12.31 on Monday. The company has a 50-day moving average price of $11.50 and a 200-day moving average price of $13.28. American Airlines Group has a 12 month low of $10.09 and a 12 month high of $16.50. The stock has a market cap of $8.14 billion, a price-to-earnings ratio of 39.71 and a beta of 1.28.

American Airlines Group (NASDAQ:AAL - Get Free Report) last announced its quarterly earnings results on Thursday, April 23rd. The airline reported ($0.40) earnings per share for the quarter, beating the consensus estimate of ($0.45) by $0.05. American Airlines Group had a net margin of 0.36% and a negative return on equity of 9.11%. The business had revenue of $13.91 billion during the quarter, compared to analysts' expectations of $16.13 billion. During the same quarter in the prior year, the company posted ($0.59) EPS. The firm's revenue for the quarter was up 10.8% compared to the same quarter last year. American Airlines Group has set its FY 2026 guidance at -0.400-1.100 EPS and its Q2 2026 guidance at -0.200-0.200 EPS.

Institutional Investors Weigh In On American Airlines Group

A number of institutional investors have recently made changes to their positions in the company. Saba Capital Management L.P. purchased a new stake in shares of American Airlines Group during the first quarter valued at approximately $803,000. Lazard Asset Management LLC grew its holdings in shares of American Airlines Group by 46.1% during the first quarter. Lazard Asset Management LLC now owns 72,509 shares of the airline's stock valued at $779,000 after buying an additional 22,894 shares during the last quarter. Union Square Park Capital Management LLC purchased a new stake in shares of American Airlines Group during the first quarter valued at approximately $1,074,000. Entropy Technologies LP purchased a new stake in shares of American Airlines Group during the first quarter valued at approximately $6,423,000. Finally, Healthcare of Ontario Pension Plan Trust Fund purchased a new stake in shares of American Airlines Group during the first quarter valued at approximately $8,678,000. Hedge funds and other institutional investors own 52.44% of the company's stock.

Trending Headlines about American Airlines Group

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

• Neutral Sentiment: Zacks Research left some longer-term expectations relatively constructive, including FY2027 EPS of $1.16 and Q1 2028 EPS of $0.58, suggesting a potential earnings recovery beyond the near term.
• Negative Sentiment: Analysts cut FY2026 EPS to a loss of $0.40 from a prior profit estimate, highlighting continued near-term earnings weakness for American Airlines Group Inc. NASDAQ: AAL.
• Negative Sentiment: Q2 2026 EPS was slashed to $0.06 from $0.69, and Q3 2026 was reduced to a loss of $0.11 per share, pointing to a weaker earnings path in the first half of next year.
• Negative Sentiment: FY2027 and FY2028 estimates were also reduced, including FY2028 EPS down to $2.09 from $3.57, which may limit investor optimism about the airline’s longer-term margin recovery.

About American Airlines Group

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.

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