Rothschild & Co. Redburn’s upgrade of American Airlines Group Inc. comes as higher fuel bills weigh on the carrier’s 2026 loss outlook following an expensive third quarter.
Redburn upgraded American Airlines to buy, ending its neutral rating. Analyst Gavin Tennant said, “Robust U.S. travel demand, rational capacity growth and fuel cost volatility should keep fares elevated through 2027.”
American Airlines’ 2026 adjusted-loss outlook calls for a loss of $1.00 to $1.60 per diluted share. The company’s filing showed third-quarter fuel and related taxes rose $1.868 billion from a year earlier.
American Airlines Chief Financial Officer Devon May separately told the Financial Times that fares could remain near current levels if fuel prices declined, a view detailed in EconoTimes’ coverage of his fare remarks.
