American Airlines shares declined as crude oil prices remained near six-month highs, negatively affecting airline stocks throughout the sector. Investors are evaluating whether persistently elevated fuel costs could hinder the company’s ability to achieve its 2026 earnings target.
Today’s Change
Current Price
American Airlines Group (AAL 5.28%), a provider of scheduled air transportation services for passengers and cargo, closed Thursday at $13.35, down 5.32%. Shares declined as higher crude oil prices pressured airline margins, with investors watching the company’s 10‑K filing and an upcoming safety-related vote.
The company’s trading volume reached 63.5 million shares, which is nearly 15% above compared with its three-month average of 55.3 million shares. American Airlines Group went public in 2005 and has fallen 31% since its IPO.
How the markets moved today
S&P 500 (SNPINDEX: ^GSPC) slipped 0.29% to finish Thursday’s session at 6,862, while the Nasdaq Composite (NASDAQINDEX: ^IXIC) declined 0.31% to close at 22,683. Among airlines, industry peers Delta Air Lines (DAL 5.19%) closed at $67.44 (-5.16%) and United Airlines (UAL 5.86%) finished at $110.05 (-5.88%), reflecting sector pressure from higher fuel costs.
What this means for investors
Crude oil hovering near six-month highs pressured airline stocks Thursday, driving a broad selloff across the sector. This pressure comes as American Airlines targets $1.70 to $2.70 in adjusted earnings per share for fiscal 2026. The company posted record revenue last quarter but missed earnings expectations, leaving less room for error if fuel expenses keep rising.
Since jet fuel is one of an airline’s highest operating costs, even modest increases in crude prices can quickly erode margins. The company’s 10-K filing and an upcoming safety-related vote added to the cautious tone, keeping regulatory and operational risks in view during a volatile session. Investors will closely watch whether American Airlines can protect margins and still deliver on its 2026 earnings target.
Eric Trie has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
