Aal stock forecast analysis shows the airline’s hedging

AAL stock forecast analysis shows the airline’s hedging strategy on jet fuel could shield margins through volatile commodity markets. Bulls argue a stable cost base will support quarterly EBITDA growth of approximately 6% into late 2024. In the second quarter, the airline reported record revenues of $14 billion, a modest year-over-year increase of 2%. However, the achievement was tempered by a significant 46% drop in net income, which amounted to $717 million, or $1.01 per share. The difference between the two is a sign of the challenges the company faces in maintaining profitability amid rising operational costs, even as demand continues to grow. American Airlines AAL reported an $1.1 billion operating profit on $14.4 billion of revenue in the second quarter. While total unit revenue declined about 20 basis points from the second quarter of 2024, structural unit costs grew 5%. Management’s updated expectations for 2025 don’t augur improving costs. Current AAL stock forecast models point toward a possible breakout if the share price sustains above the $13.20 resistance level. Institutional buying has increased 8% over the past month, hinting at strengthening confidence in the airline industry's late 2024 momentum.