American Airlines (AAL) stock slips after free Wi‑Fi plan; analysts lift targets before earnings

American Airlines (AAL) stock slips after free Wi‑Fi plan; analysts lift targets before earnings

New York, January 6, 2026, 20:03 EST — Market closed

American Airlines Group shares fell 1% to $15.67 at Tuesday’s close after the carrier said it would roll out free in-flight Wi‑Fi for customers enrolled in its AAdvantage loyalty program, stepping up a battle among U.S. airlines to lock in frequent flyers. StockAnalysis

The timing matters because free connectivity has become a tool to pull travelers into loyalty ecosystems that feed high-margin credit-card deals and premium-seat sales. Loyalty programs generated more than $6 billion in revenue for both American and Delta in 2024, Business Insider reported, as airlines leaned harder on repeat customers. Business Insider

American said the Wi‑Fi rollout starts this month and will expand in phases, beginning with narrowbody and dual-class regional aircraft before reaching nearly every flight by early spring. “Free high-speed Wi‑Fi isn’t just a perk — it’s essential for today’s travelers,” Chief Customer Officer Heather Garboden said. American Airlines Newsroom

The airline plans to rely on satellite systems from Viasat and SES, and about 900 American aircraft already carry satellite Wi‑Fi equipment, the Verge reported. Delta has offered free Wi‑Fi through T‑Mobile, while United is moving to Starlink as carriers compete on onboard tech as much as schedules. The Verge

Wall Street also recalibrated around the stock. UBS analyst Atul Maheswari maintained a buy rating on Tuesday and raised his price target to $21 from $20, while BofA Securities analyst Andrew Didora lifted his target to $17 from $15 and kept a neutral rating, Benzinga data showed. Benzinga

Fuel remains a key swing factor for the group. U.S. crude fell more than 2% on Tuesday and extended losses on Wednesday after President Donald Trump said Venezuela would deliver 30 million to 50 million barrels of sanctioned oil to the United States, Reuters reported. Reuters

But operational shocks can still upend the thesis. A weekend airspace closure in the eastern Caribbean triggered hundreds of flight cancellations across major U.S. carriers, and American added 7,000 seats with 43 extra flights to help clear the backlog, ABC News reported. ABC News

AAL traded between $15.60 and $16.16 on Tuesday, with volume around 82.8 million shares as the stock gave back part of Monday’s 2.26% gain. The next major catalyst is American’s quarterly report, which earnings calendars estimate for Jan. 22, when investors will watch demand, pricing and costs — including unit revenue, a measure of sales per seat-mile. Investing

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