Barclays Raises PT on American Airlines Group Inc. (AAL) Despite Weak Earnings Outlook

With a low P/E multiple and potential upside for investors, American Airlines Group Inc. (NASDAQ:AAL) is among the 14 Cheap Transportation Stocks to Buy According to Analysts.

On July 10, 2025, Barclays increased its price target on the American Airlines Group Inc. (NASDAQ:AAL) from $11 to $12, maintaining an ‘Equal Weight’ rating. The analysts at Barclays acknowledged that the airline earnings outlook is likely to stay weak amid higher jet fuel prices and continued weak U.S. leisure demand. However, they believe that if the company cuts its capacity in Q4, investors could react positively, given the resulting impact on pricing and profitability.

Meanwhile, ahead of its Q2 2025 earnings announcement due on July 24, 2025, other analysts expect American Airlines Group Inc. (NASDAQ:AAL) to report a 27.5% decrease in earnings per share (EPS) to $0.79 per share and a slight revenue dip to $14.29 billion. The extent to which actual results vary from the forecasts could define the company’s short-term outlook.

At the same time, American Airlines Group Inc. (NASDAQ:AAL) is adding three new winter routes from Chicago and Philadelphia to Mexico City, Queretaro, and Santo Domingo. Furthermore, the airline will expand its seasonal service across Latin America, offering over 2.3 million round-trip passengers during the holiday season, which would be 1 million more than its closest competitor.

American Airlines Group Inc. (NASDAQ:AAL) is a global network air carrier, providing scheduled air transportation services for passengers and cargo. It is on the list of cheap transportation stocks.

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