Skip to Content

American Airlines Group Inc AAL

Morningstar Rating
$13.92 −0.31 (2.18%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

American Airlines Captures Some Margin in the Postpandemic Travel Wave

Before the coronavirus pandemic, much of American Airlines’ story was based on realizing cost efficiencies from its 2013 merger with US Airways and strengthening its hubs to expand margins. While we observed a bump in operating margin to 15.1% in 2015, when the merger was financially consolidated and fuel prices dropped, American saw steady unit cost growth through 2019, when it delivered a 6.7% operating margin. While we expect American can achieve some operating cost improvement in the coming years, we do not expect it to structurally improve its relative position among airlines.

Price vs Fair Value

AAL is trading at a 16% premium.
Price
$14.23
Fair Value
$92.70
Uncertainty
High
1-Star Price
$47.95
5-Star Price
$2.46
Economic Moat
Csq
Capital Allocation
Xjqkcbrd

Bulls Say, Bears Say

Bulls

American has the youngest fleet among U.S. major airlines, which should limit the growth of fuel and maintenance expenses.

Bears

Substantial financial leverage may constrain American's ability to invest aggressively in capacity or return capital to shareholders.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if AAL is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$14.23
Day Range
$13.8214.33
52-Week Range
$10.8619.08
Bid/Ask
$14.04 / $14.06
Market Cap
$9.11 Bil
Volume/Avg
41.0 Mil / 30.2 Mil

Key Statistics

Price/Earnings (Normalized)
5.39
Price/Sales
0.19
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

American Airlines is the world’s largest airline by aircraft, capacity, and scheduled revenue passenger miles. Its major U.S. hubs are Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C. It generates over 30% of U.S. airline revenue connecting Latin America with destinations in the United States. After completing a major fleet renewal, the company has the youngest fleet of U.S. legacy carriers.
Sector
Industrials
Industry
Airlines
Stock Style Box
Mid Core
Total Number of Employees
132,100

Competitors

Valuation

Metric
AAL
UAL
DAL
Price/Earnings (Normalized)
5.395.137.64
Price/Book Value
1.932.85
Price/Sales
0.190.330.54
Price/Cash Flow
2.872.714.78
Price/Earnings
AAL
UAL
DAL

Financial Strength

Metric
AAL
UAL
DAL
Quick Ratio
0.440.730.29
Current Ratio
0.620.830.41
Interest Coverage
1.252.448.69
Quick Ratio
AAL
UAL
DAL

Profitability

Metric
AAL
UAL
DAL
Return on Assets (Normalized)
2.75%4.69%5.85%
Return on Equity (Normalized)
42.22%47.04%
Return on Invested Capital (Normalized)
7.97%9.35%13.54%
Return on Assets
AAL
UAL
DAL
See how this stock stacks up to its competitors with Morningstar Investor

Airlines Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
DAL
Delta Air Lines IncTrchlmlWjlw$31.8 Bil
RYAAY
Ryanair Holdings PLC ADRFpgqk$25.4 Bil
RYAOF
Ryanair Holdings PLCVpvtxmh$25.4 Bil
UAL
United Airlines Holdings IncBbxrpnxzcXwv$17.8 Bil
LUV
Southwest Airlines CoLdpgprwtLjtc$17.4 Bil
AICAF
Air China Ltd Class HCbhvr$14.2 Bil
SINGY
Singapore Airlines Ltd ADRBzpq$14.2 Bil
AIRYY
Air China Ltd ADRDksl$14.0 Bil
SINGF
Singapore Airlines LtdGtprv$14.0 Bil

Sponsor Center