American Airlines: Not Priced For The Recovery


  • American Airlines reported strong Q4’22 numbers and guided to a massive EPS in ’23.
  • The airline guided to 2023 EPS of $2.50 to $3.50 with plenty of catalysts for higher profits in the years ahead.
  • The stock is crazy cheap at only 2x operating cash flows and 5x midpoint ’23 EPS targets.

American Airlines Boeing 777-200ER Banking

santirf/iStock Editorial via Getty Images

Despite guiding up Q4’22 targets a few weeks back, American Airlines Group (NASDAQ:AAL) hardly rallied. Now the airline has guided to robust profits in 2023 that easily soar past analyst estimates, yet the stock

Finviz Chart


Guidance slide

American Airlines Investor Update

Data by YCharts

Disclosure: I/we have a beneficial long position in the shares of AAL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.

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