UBS Turns More Constructive on American Airlines (AAL) as Corporate Travel Recovers

American Airlines Group Inc. (NASDAQ:AAL) is included among the 10 Cash-Rich Stocks to Buy Now.

On December 12, UBS analyst Atul Maheswari upgraded American Airlines Group Inc. (NASDAQ:AAL) to Buy from Neutral and raised the price target to $20 from $14 after assuming coverage. In a research note, the analyst said the market is not fully valuing the airline’s ability to “meaningfully expand” profits in the coming years as corporate travel demand recovers. UBS also expects growth in loyalty income and believes the company is positioned to benefit from structural tailwinds supporting large network carriers.

Earlier in November, the airline said it would cut hundreds of corporate jobs following a third-quarter loss, according to a person familiar with the matter. The reductions affect mid-level management and support staff, the person said, requesting anonymity because the details are private. Most of the cuts are tied to roles based at the company’s headquarters in Fort Worth, Texas.

The decision followed an adjusted loss of 17 cents per share in the third quarter. While the result was better than Wall Street expected, it was compared with a profit of 30 cents per share a year earlier. American employed 102,674 people in 2024, according to data from aviation analytics firm Cirium. That compares with 100,924 employees at Delta Air Lines and 96,422 at United Airlines Holdings.

American Airlines Group Inc. (NASDAQ:AAL) operates one of the largest airline networks in the world, with its core business focused on passenger air transportation.

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