Why American Airlines Group Inc. (AAL) Went Down on Tuesday

We recently compiled a list of the 10 Stocks Battered by Bearish Outlooks. In this article, we are going to take a look at where American Airlines Group Inc. (NASDAQ:AAL) stands against the other stocks.

Ten firms ended Tuesday suffering a sell-off, as investor sentiment continues to be dampened by macroeconomic uncertainties and bearish outlooks from analysts and their management.

The stocks–three of which belong to the travel and tourism industry–registered losses following lower outlook guidance, taking into account the potential effects of President Donald Trump’s trade war with other countries.

The pessimistic sentiment mirrored the broader market decline, with the Dow Jones slashing another 1.14 percent during the day, the S&P dropping 0.76 percent, and the Nasdaq dipping 0.18 percent.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in trading volume.

A passenger jet taking off, representing the company’s commitment to air transportation services.

American Airlines Group Inc. (NASDAQ:AAL)

American Airlines Group Inc. (NASDAQ:AAL) fell for the fourth consecutive day on Tuesday, losing 8.32 percent to end at $11.46 each as lower earnings estimates for the first quarter of the year weighed down on investor sentiment.

In a regulatory filing, American Airlines Group Inc. (NASDAQ:AAL) said revenues for the first quarter of the year are now expected to remain flat from the same period last year. Previously, AAL expected revenues to inch up by 3 to 5 percent.

Meanwhile, available seat miles were also expected to remain flat, as compared with its previous flat to 2-percent growth guidance.

“Since the Company’s initial first-quarter guidance issued on January 23, 2025, the revenue environment has been weaker than initially expected due to the impact of Flight 5342 and softness in the domestic leisure segment, primarily in March. First-quarter total revenue is now expected to be approximately flat versus the first quarter of 2024. Based on these updated assumptions, the Company expects its adjusted loss per diluted share to be approximately ($0.60) to ($0.80),” the carrier said.

Overall AAL ranks 3rd on our list of Tuesday’s worst performers. While we acknowledge the potential of AAL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAL but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.