New York, Jan 28, 2026, 15:38 ET — Regular session
- American Airlines shares slipped in afternoon trading, as investors digested storm-related disruptions alongside the near-term outlook.
- Management remained optimistic about profits in 2026 but cautioned that the first quarter will face headwinds.
- Investors are focused on the pace of operations returning to normal and the potential rise in costs as crews and planes get back on track.
Shares of American Airlines Group Inc dipped 0.9% to $13.43 in Wednesday afternoon trading, after hitting a low of $13.40 earlier. The stock fluctuated between $13.40 and $13.74 during the session.
On Tuesday, the airline said Winter Storm Fern has already caused over 9,000 cancellations and is expected to slash first-quarter revenue by $150 million to $200 million, forcing a reduction in planned flying capacity. Despite this, it maintained its 2026 adjusted earnings forecast at $1.70 to $2.70 per share, a figure that excludes special items and remains above the $1.97 average estimate from analysts. The company also projected a first-quarter loss of 10 to 50 cents per share. CFO Devon May described the storm impact estimate as preliminary and said operations should return to near normal by Thursday, noting, “This impact of this storm is greater than any storm in the history of our company.” (Reuters)
That’s the trade. Investors are weighing if the storm is just a brief hit to the quarter or a lasting disruption that throws off schedules and boosts costs beyond what management anticipated.
American posted a record $14.0 billion in fourth-quarter revenue and $54.6 billion for the full year, according to its latest quarterly report. The airline reported GAAP net income of $99 million for the quarter but said a government shutdown shaved about $325 million off fourth-quarter revenue. Total debt dropped by $2.1 billion in 2025. CEO Robert Isom said the airline is “positioned for significant upside in 2026 and beyond,” projecting more than $2 billion in free cash flow next year. (American Airlines Newsroom)
On Tuesday, the company filed a Form 8-K containing both its earnings release and an investor presentation. (SEC)
The storm remains the biggest headache on trading floors. Union reps told Reuters some crews camped out in airport terminals overnight, facing waits of six to 11 hours just to contact the teams handling schedules, hotels, and transportation. Julie Hedrick, president of the Association of Professional Flight Attendants, said, “It feels like this has probably been the worst we’ve dealt with, in terms of recovering.” (Reuters)
A severe winter storm wiped out thousands of flights earlier this week, leaving crews and planes scattered and making it tough to bounce back. On Monday, American Airlines faced the brunt, canceling nearly 1,180 flights and delaying around 1,130, FlightAware data cited by Reuters shows. (Reuters)
Shares in airlines moved unevenly amid broader market action on Wednesday. Delta Air Lines slipped 0.1%, whereas United Airlines Holdings gained 0.7%.
JetBlue, which released its earnings on Tuesday, said it doesn’t anticipate a significant hit from the storm, with cancellations tallying around 1,100 flights—much fewer than American’s numbers. The airline’s shares dropped after it reported a larger-than-expected quarterly loss, fueling volatility in airline stocks. (Reuters)
Competition casts a shadow over the 2026 outlook. This week, United rolled out its largest-ever summer schedule at Chicago O’Hare, targeting a direct clash with American Airlines for gates and higher-paying customers. The airline also cautioned that excess capacity could drag fares down, even if demand remains steady. “We’re going to build a schedule that our passengers want to fly,” said United network planning executive Patrick Quayle. (Reuters)
The downside is straightforward. If storm recovery lingers, revenue losses could deepen and unit costs spike as the airline shells out more to reposition crews and planes, all while labor tensions boil over at the worst possible moment.
Thursday brings the next critical update, with management anticipating operations to near normal levels. Traders are focused on any revisions to the storm-impact estimate and whether booking momentum can hold up amid further cancellations and delays.
