American Airlines Stock Plummets 12.93% in Six Days, Trading Volume Ranks 91st as Jefferies Downgrades to Hold

On April 1, 2025, American Airlines (AAL) experienced a significant decline, with its stock price dropping by 2.37%. This marks the sixth consecutive day of decline for the airline, resulting in a total decrease of 12.93% over the past six days. The trading volume for AAL on this day was substantial, reaching 7.58 billion, placing it at the 91st position in terms of trading volume for the day.

Jefferies, a prominent investment banking firm, has downgraded its outlook for American Airlines Group (AAL) from "Buy" to "Hold." This change in rating comes as the firm lowered its price target for AAL from $20 to $12, citing concerns over the airline's first-quarter performance and overall market conditions. The downgrade reflects Jefferies' assessment of the current economic environment and its impact on consumer travel spending, which has shown signs of slowing down.

Jefferies' decision to downgrade AAL is part of a broader trend of reduced optimism in the airline industry. The firm has also downgraded other major U.S. carriers, including Delta Air Lines and Southwest Airlines, reflecting a cautious stance on the sector's near-term prospects. This move is likely to influence investor sentiment and could lead to further volatility in airline stocks as market participants reassess their positions.

Jefferies expects that American Airlines, along with other major carriers, may need to adjust their 2025 earnings per share (EPS) guidance downward. The firm's analysis suggests that declining consumer confidence and revenue growth are likely to put pressure on airline earnings, making it necessary for companies to revise their financial projections. This outlook adds to the challenges faced by the airline industry, which has been grappling with rising costs and fluctuating demand.