American Airlines (AAL)
Market Price (11/4/2025): $13.0 | Market Cap: $8.6 BilSector: Industrials | Industry: Passenger Airlines
American Airlines (AAL)
Market Price (11/4/2025): $13.0Market Cap: $8.6 BilSector: IndustrialsIndustry: Passenger Airlines
Investment Highlights
Why It Matters
Which of these 2 stories sounds closer for this stock?
1. Generates cash flow
The stock generated 4% or more of the share price (called cash flow yield), and shows moderate 10-15% or more growth.
2. Riding a trend
Think Tesla during the pandemic of 2020 when EVs were riding a cultural high, or Nvidia in the current AI boom, or even Figma. These companies don’t have enough yield, or, enough growth, or both - however - they are riding a trend. They have momentum. These can be more volatile - they don’t have the floor of strong cash flow
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 7.2%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 3.2%, FCF Yield is 11% | Weak multi-year price returns2Y Excs Rtn is -48%, 3Y Excs Rtn is -83% | Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 350% |
| Attractive cash flow generationCFO LTM is 3.8 Bil |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 7.2%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 3.2%, FCF Yield is 11% |
| Attractive cash flow generationCFO LTM is 3.8 Bil |
| Weak multi-year price returns2Y Excs Rtn is -48%, 3Y Excs Rtn is -83% |
| Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 350% |
Market Valuation & Key Metrics
AAL Stock
Return vs. Risk
Price Returns Compared
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| AAL Return | -45% | 14% | -29% | 8% | 27% | -27% | -54% |
| Peers Return | -29% | 1% | -18% | 8% | 50% | -2% | -7% |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 15% | 112% |
Monthly Win Rates [3] | |||||||
| AAL Win Rate | 33% | 50% | 50% | 42% | 50% | 40% | |
| Peers Win Rate | 38% | 47% | 48% | 43% | 58% | 52% | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | |
Max Drawdowns [4] | |||||||
| AAL Max Drawdown | -68% | -5% | -34% | -14% | -33% | -48% | |
| Peers Max Drawdown | -69% | -13% | -30% | -15% | -14% | -35% | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | |
[1] Cumulative total returns since the beginning of 2020
[2] Peers: DAL, UAL, LUV, AAL, AL. See AAL Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 11/4/2025 (YTD)
How Low Can It Go
| Event | AAL | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -57.7% | -25.4% |
| % Gain to Breakeven | 136.4% | 34.1% |
| Time to Breakeven | Not Fully Recovered days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -70.3% | -33.9% |
| % Gain to Breakeven | 237.1% | 51.3% |
| Time to Breakeven | Not Fully Recovered days | 148 days |
| 2018 Correction | ||
| % Loss | -58.2% | -19.8% |
| % Gain to Breakeven | 139.1% | 24.7% |
| Time to Breakeven | Not Fully Recovered days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -97.2% | -56.8% |
| % Gain to Breakeven | 3420.5% | 131.3% |
| Time to Breakeven | Not Fully Recovered days | 1480 days |
Compare to DAL, UAL, LUV, AAL, AL
In The Past
American Airlines's stock fell -57.7% during the 2022 Inflation Shock from a high on 6/2/2021. A -57.7% loss requires a 136.4% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth over time.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
Latest Trefis Analyses
| Title | Topic | Date | |
|---|---|---|---|
| DASHBOARDS | |||
| American Airlines Stock Jumped 15% in a Month, What Now? | Return | ||
| Why DAL With 8.3% Upside May Beat AAL? | |||
| null | |||
| AAL Dip Buy Analysis | |||
| Time To Buy American Airlines Stock? | Buy or Fear | ||
| American Airlines Total Shareholder Return (TSR): 26.9% in 2024 and -1.0% 3-yr compounded annual returns (below peer average) | |||
| American Airlines (AAL) Operating Cash Flow Comparison | Financials | ||
| American Airlines (AAL) Net Income Comparison | Financials | ||
| American Airlines (AAL) Operating Income Comparison | Financials | ||
| American Airlines (AAL) Revenue Comparison | Financials | ||
| ARTICLES | |||
| Is It Time To Buy American Airlines Stock? | September 17th, 2025 | ||
| AAL Fell 5.6% In A Day. Just a Blip, or the Start? | July 14th, 2025 | ||
| American Airlines: An Unattractive Investment Despite Low Valuation | June 12th, 2025 | ||
| Should You Pick American Airlines Stock At $17? | December 19th, 2024 | ||
| What’s Happening With American Airlines Stock? | September 3rd, 2024 |
Trade Ideas
Select past ideas related to AAL. For more, see Trefis Trade Ideas.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 10312025 | GEO | GEO | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -0.9% | -0.9% | -0.9% |
| 10312025 | RUN | Sunrun | Special | Short Squeeze PotentialShort Squeeze PotentialHas potential for a short squeeze. High short interest, rising short interest and high debt. | -3.8% | -3.8% | -3.8% |
| 10312025 | PLPC | Preformed Line Products | Quality | Q | Momentum | UpsideQuality Stocks with Momentum and UpsideBuying quality stocks with strong momentum but still having room to run | -0.4% | -0.4% | -0.4% |
| 10172025 | VRSK | Verisk Analytics | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -7.3% | -7.3% | -10.5% |
| 10102025 | CARR | Carrier Global | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 2.5% | 2.5% | -0.8% |
| 05312019 | AAL | American Airlines | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 6.3% | -61.0% | -66.5% |
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 10312025 | GEO | GEO | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -0.9% | -0.9% | -0.9% |
| 10312025 | RUN | Sunrun | Special | Short Squeeze PotentialShort Squeeze PotentialHas potential for a short squeeze. High short interest, rising short interest and high debt. | -3.8% | -3.8% | -3.8% |
| 10312025 | PLPC | Preformed Line Products | Quality | Q | Momentum | UpsideQuality Stocks with Momentum and UpsideBuying quality stocks with strong momentum but still having room to run | -0.4% | -0.4% | -0.4% |
| 10172025 | VRSK | Verisk Analytics | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -7.3% | -7.3% | -10.5% |
| 10102025 | CARR | Carrier Global | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 2.5% | 2.5% | -0.8% |
| 05312019 | AAL | American Airlines | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 6.3% | -61.0% | -66.5% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons for American Airlines
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 55.65 |
| Mkt Cap | 15.5 |
| Rev LTM | 54,294 |
| Op Inc LTM | 2,259 |
| FCF LTM | 882 |
| FCF 3Y Avg | 962 |
| CFO LTM | 3,771 |
| CFO 3Y Avg | 3,667 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 4.2% |
| Rev Chg 3Y Avg | 8.1% |
| Rev Chg Q | 2.6% |
| QoQ Delta Rev Chg LTM | 0.7% |
| Op Mgn LTM | 8.8% |
| Op Mgn 3Y Avg | 9.2% |
| QoQ Delta Op Mgn LTM | -0.0% |
| CFO/Rev LTM | 12.7% |
| CFO/Rev 3Y Avg | 12.1% |
| FCF/Rev LTM | 1.6% |
| FCF/Rev 3Y Avg | 1.8% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 15.5 |
| P/S | 0.6 |
| P/EBIT | 5.5 |
| P/E | 8.9 |
| P/CFO | 4.1 |
| Total Yield | 11.2% |
| Dividend Yield | 0.6% |
| FCF Yield 3Y Avg | 5.7% |
| D/E | 1.1 |
| Net D/E | 0.6 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -2.5% |
| 3M Rtn | 5.6% |
| 6M Rtn | 21.7% |
| 12M Rtn | 1.5% |
| 3Y Rtn | 74.6% |
| 1M Excs Rtn | -4.7% |
| 3M Excs Rtn | -3.6% |
| 6M Excs Rtn | 0.9% |
| 12M Excs Rtn | -19.5% |
| 3Y Excs Rtn | -8.6% |
Returns Analyses
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 9302025 | 10232025 | 10-Q 9/30/2025 |
| 6302025 | 7242025 | 10-Q 6/30/2025 |
| 3312025 | 4242025 | 10-Q 3/31/2025 |
| 12312024 | 2192025 | 10-K 12/31/2024 |
| 9302024 | 10242024 | 10-Q 9/30/2024 |
| 6302024 | 7252024 | 10-Q 6/30/2024 |
| 3312024 | 4252024 | 10-Q 3/31/2024 |
| 12312023 | 2212024 | 10-K 12/31/2023 |
| 9302023 | 10192023 | 10-Q 9/30/2023 |
| 6302023 | 7202023 | 10-Q 6/30/2023 |
| 3312023 | 4272023 | 10-Q 3/31/2023 |
| 12312022 | 2222023 | 10-K 12/31/2022 |
| 9302022 | 10202022 | 10-Q 9/30/2022 |
| 6302022 | 7212022 | 10-Q 6/30/2022 |
| 3312022 | 4212022 | 10-Q 3/31/2022 |
| 12312021 | 2222022 | 10-K 12/31/2021 |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
