Why American Airlines Group Inc. (AAL) Went Down On Wednesday?

We recently published a list of Today’s 10 Worst-Performing Stocks. In this article, we are going to take a look at where American Airlines Group Inc. (NASDAQ:AAL) stands against other worst-performing stocks.

Wall Street’s main indices finished mixed on Wednesday, with the Dow Jones emerging as the sole decliner as investors digested more news of tariff threats from President Donald Trump.

The Dow Jones dropped by 0.20 percent. In contrast, the S&P 500 and Nasdaq clocked in gains of 0.49 percent and 1.22 percent, respectively.

Ten companies mirrored a mostly pessimistic trading—four of which were Chinese stocks—as traders sold off to minimize risks from the potential impact of the US’ trade war with China.

In this article, we have identified the 10 worst performers on Wednesday and detailed the reasons behind their performance.

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 fell for a fifth straight day on Wednesday, losing 4.62 percent to finish at $10.93 apiece as investors sold off positions after the company turned pessimistic on its outlook for the first quarter of the year.

In a recent regulatory filing, AAL said it now expects revenues for the first quarter of the year to remain flat from the same period year-on-year, a revision from the 3 to 5 percent expected previously.

Meanwhile, available seat miles were also expected to remain unchanged on a year-on-year basis, 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,” AAL said.

“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),” it added.

Overall, AAL ranks 10th on our list of worst-performing stocks. 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.

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