American Airlines (AAL) Stock: Atlantic Routes Soar as Share Price Climbs 5.40%

TLDR

AAL stock up 5.40% amid strong performance in international travel segments Raymond James maintains Outperform rating but lowered price target to $14 from $15 Q1 2025 saw Atlantic passenger revenue per available seat mile increase 10.5% year-over-year Pacific passenger revenue rose 4.9% with 24.1% capacity increase driven by Japan demand International travel segment expected to outperform domestic market in Q2

---

American Airlines Group Inc. (AAL) has seen its stock jump 5.40% as the carrier continues to benefit from strong international travel demand, particularly in Atlantic and Pacific markets. The airline, which operates a mainline fleet of 977 aircraft across multiple global hubs, is being highlighted as a potential high-volume stock pick despite challenges in the domestic market.

American Airlines Group Inc. (AAL)

The recent performance of American Airlines has caught the attention of market watchers who track high-volume stocks. With an average 3-month trading volume of 63.39 million shares, AAL has established itself as a stock with substantial market interest.

Investor sentiment in the broader market has been mixed recently. According to BMO private wealth chief market strategist Carol Schleif, a market decline in April reached nearly 20% before recovering to end just 3-4% down.

During this volatile period, about 10% of investors were eager to buy while another 10% showed nervousness. The majority maintained a measured approach.

Raymond James recently adjusted its outlook on American Airlines, lowering its price target to $14 from $15. Despite the reduction, the firm maintained an Outperform rating on the stock.

Analysts at Raymond James see an attractive risk-reward profile for AAL, supported by specific earnings drivers. They acknowledge the airline isn’t immune to weakness in domestic main cabin performance.

However, the relative sequential revenue and cost trends are encouraging signs for the company’s outlook.

International Strength Offsetting Domestic Weakness

The first quarter of 2025 showed promising results for American’s international segments. Atlantic passenger revenue per available seat mile (RASM) increased by 10.5% compared to the same period last year.

Pacific routes also performed well, with passenger RASM rising by 4.9%. This came alongside a substantial 24.1% increase in capacity, primarily driven by strong demand in Japan.

The company continues to see robust overall demand for international travel from U.S. customers. This strength is expected to continue, with the international segment projected to outperform the domestic market in the second quarter.

American Airlines currently ranks 9th on a list of best high-volume stocks to buy, according to recent analysis. The stock has attracted interest from institutional investors, with 59 hedge funds holding positions in the company as of Q4 2024.

While domestic travel remains challenging, American’s global network provides some insulation from these pressures. The company operates several hubs across U.S. cities along with partner gateways in international locations including London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo.

This extensive network allows American to capitalize on stronger international travel trends while working through softer domestic demand.

The most recent data shows American Airlines continues to see strong bookings for international routes, particularly for summer travel. This positive trend in international markets remains the brightest spot in the company’s current performance.

The post American Airlines (AAL) Stock: Atlantic Routes Soar as Share Price Climbs 5.40% appeared first on CoinCentral.