On the back of a narrower-than-expected first-quarter loss, American Airlines Group Inc (NASDAQ:AAL) slashed its full-year outlook for 2026, citing rising fuel costs as the war between the U.S. and Iran continues to block crude tankers from passing through the Strait of Hormuz. For the first quarter, the airline reported a loss of 40 cents per share on revenue of $13.91 billion.
AAL is 1.6% higher to trade at $11.68 before the open, shaking off earlier losses on the back of yesterday's third-straight daily drop. The airline stock has taken a hit this year, now off 25% in 2026 after being rejected at the 360-day moving average late last week.
Analysts have been split among the equity. Heading into today, 12 of the 23 brokerages in coverage sport a "buy" or better recommendation. Plus, the 12-month consensus target price of $14.57 is a 26.7% discount to current levels.
Calls have been more popular than usual in the options pits. This is per the stock's 10-day call/put volume ratio of 3.18 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This sits higher than 71% of annual readings, leaving ample room for bears to move in.
