New York, Jan 28, 2026, 05:39 EST — Premarket
Key points:
- AAL traded near $13.55 in early premarket, after tumbling 7% on Tuesday
- Winter Storm Fern disruptions and a quarterly profit miss sparked the selloff, despite upbeat guidance for 2026
- Focus now turns to operational recovery as April’s earnings report approaches
Shares of American Airlines Group Inc traded near $13.55 in premarket Wednesday, steady after tumbling 7% the previous day. On Tuesday, the stock closed at $13.55, swinging between $14.65 and $13.36 during the session. (Investing)
The drop followed the company missing its quarterly profit targets and warning that Winter Storm Fern would weigh on first-quarter results with more than 9,000 cancellations. “The impact of this storm is greater than any storm in the history of our company,” CFO Devon May told Reuters, adding the estimate remains preliminary as the airline works to resume normal operations. (Reuters)
Why it matters now: American is urging investors to support a push toward more premium seats and corporate travel to lift earnings amid ongoing challenges. The airline expects adjusted earnings between $1.70 and $2.70 per share in 2026, alongside over $2 billion in free cash flow. It also forecast a first-quarter adjusted loss ranging from 10 to 50 cents per share. CEO Robert Isom said the airline is “positioned for significant upside in 2026 and beyond.” (SEC)
Airline stocks stumbled Tuesday, with American Airlines posting some of the sharpest losses in the group. United Airlines slid 3.45%, Delta Air Lines fell 2.01%, and Southwest Airlines closed down 1.64%, MarketWatch reports. (MarketWatch)
American’s quarterly results came in messy. The airline posted record revenue for the fourth quarter but also took a hit of about $325 million from the U.S. government shutdown. This storm is now set to weigh on near-term margins.
The company’s first-quarter outlook includes a dip in flying capacity and higher expenses linked to cancellations and re-accommodation. Investors are watching CASM-ex — cost per available seat mile excluding fuel — to see how airlines handle non-fuel costs.
Trading activity mirrored the change in mood. American saw roughly 101 million shares trade hands Tuesday, well above its typical volume, as investors weighed the storm’s short-term effects against the bigger picture. (Nasdaq)
But the downside is evident: ongoing disruptions, rising rebooking costs, or a drop in main cabin demand could hit first-quarter revenue and expenses harder, tightening cash flow further.
Traders are zeroed in on the pace at which the airline boosts flights at key hubs, and whether booking momentum holds as weather conditions get better, especially with competitors releasing fresh updates on demand and disruption patterns.
American’s earnings report, set for April 23, is the next key event to watch. It should shed more light on spring demand and the cost challenges the airline is facing. (Investing)
