• American Airlines reported a Q4 EPS of $0.16, missing the expected $0.38.
• The company's Q4 revenue was $14 billion, surpassing the estimated $13.38 billion.
• Despite revenue outperformance, AAL stock declined by 2.2% due to the earnings miss.

American Airlines Group Inc. (NASDAQ:AAL) is a major player in the airline industry, providing passenger and cargo services across the globe. The company competes with other major airlines like Delta Air Lines and United Airlines. On January 27, 2026, American Airlines reported its fourth-quarter earnings, revealing an earnings per share (EPS) of $0.16, which was below the expected $0.38.

The company's revenue for the quarter was approximately $14 billion, surpassing the estimated $13.38 billion. Despite this revenue achievement, the stock experienced a decline of 2.2%, trading at $14.25. This drop reflects investor disappointment with the earnings miss, as highlighted by Schaeffer's Research.

American Airlines' EPS of $0.16 was a significant decline from the $0.86 reported in the same quarter last year, representing a negative surprise of 57.85%. However, in the previous quarter, the company had a positive surprise, reporting a smaller loss than expected. Over the past four quarters, American Airlines has exceeded consensus EPS estimates three times.

The company's revenue of $14 billion was slightly below the Zacks Consensus Estimate by 0.52% but showed an increase from the $13.66 billion in the same period last year. American Airlines has surpassed consensus revenue estimates three times in the last four quarters. The company anticipates a revenue increase of 7% to 10% in the first quarter of 2026.

Despite missing earnings estimates, American Airlines is optimistic about its future. The company aims to improve its adjusted earnings per share by nearly $2 at the midpoint over the previous year. It plans to focus on premium services and capitalize on strong demand from high-spending customers. CEO Robert Isom believes the company is "positioned for significant upside in 2026 and beyond."