American Airlines Q4 Falls Short
Investors eye costs and 2026 outlook
This article first appeared on GuruFocus. American Airlines Group (NASDAQ:AAL) wrapped up the quarter with a miss on both earnings and revenue, giving investors another reminder that the airline's recovery is still a bit uneven. The carrier posted non-GAAP EPS of $0.16, falling $0.19 short of expectations, while revenue came in at $14.0 billion. That was up 2.2% from a year ago, but still about $30 million light. The numbers suggest demand is holding up, but costs continue to do real damage to profitability, especially late in the year. Warning! GuruFocus has detected 5 Warning Sign with AAL.
Is AAL fairly valued? Test your thesis with our free DCF calculator. Looking ahead, management offered a cautious but not disastrous outlook. American guided to full-year 2026 adjusted EPS of $1.70 to $2.70, bracketing the $1.96 consensus. For the first quarter, the airline expects capacity to grow 3.0% to 5.0% and revenue to rise 7.0% to 10.0%, even as it projects an adjusted loss of $0.10 to $0.50 per share. Unit costs excluding fuel are still moving higher, up 3.0% to 5.0%. View Comments