American Airlines Group Inc., through its subsidiaries, operates as a network air carrier. The company provides scheduled air transportation services for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C., as well as through partner gateways in London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo. It operates a mainline fleet of 965 aircraft. The company was formerly known as AMR Corporation and changed its name to American Airlines Group Inc. in December 2013. American Airlines Group Inc. was founded in 1926 and is headquartered in Fort Worth, Texas.

American Airlines looks like a company with high revenue, but very weak quality in converting that revenue into profit and capital. On valuation multiples, the stock appears cheap: P/S of 0.15 and P/FCF of 6.49 are noticeably below industry medians; however, P/E and P/B effectively fail to provide a proper signal because of zero/distorted values, which usually reflects unstable profitability and a weak balance-sheet base. Operating margin of 1.73% and gross margin of 21.11% are below industry benchmarks, while year-by-year trends show deterioration in operating efficiency relative to the stronger quarters of 2025. At the same time, revenue remains large and generally stays at a high level, and gross profit and EBITDA periodically recover, which indicates operational scale and the ability to generate cash flow in favorable periods. On the other hand, net income and net margin remain extremely weak, and ROA, ROE, ROI, and return on tangible capital do not confirm a sustainable return on assets and capital. Liquidity also looks strained: a current ratio of 0.53 and a quick ratio of 0.42 are significantly below comfortable levels, increasing sensitivity to fuel costs, demand, and refinancing. Debt burden remains a key risk, as long-term debt of about $25.8 billion combined with negative shareholders’ equity points to a fragile balance-sheet structure. Net worth is formally high relative to the industry, but together with negative equity this more likely reflects the specifics of the calculation than real financial strength. Dividend yield of about 0.34% does not look sufficient compensation for balance-sheet and cyclical risks. Overall, the fundamentals support only a moderately cautious view: the stock may look inexpensive on revenue and cash flow, but earnings quality, liquidity, and debt load limit revaluation potential. For an investor, this is more a recovery story with elevated risk than a stable increase in fair value.

American Airlines Group, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, без изменений. Медведи в растерянности.

Strong index, flat. The bears are confused.

Слабый индекс, значительно вырос. Рынок не поддерживает быков.

Weak index, significantly up. The market does not support the bulls.

Слабый индекс, значительно упал. Рынок на стороне медведей.

Weak index, significantly down. The market is on the bears' side.

Слабый индекс, незначительно упал

Слабый индекс, значительно вырос. Увеличился приток средств в шорты.

Weak index, significantly up. The inflow of funds into shorts has increased.

Cheap on revenue and FCF, but with low margins, weak liquidity, and high debt risk; the fundamentals justify a cautious assessment.

The S&P 500 Index ($SPX) (SPY) closed up by +0.46% on Wednesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed up by +0.56%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up by +0.23%. E-mini S&P futures (ESU26) rose +0.46%, and September E-mini Nasdaq futures (NQU26) rose +0.23%.
Stocks settled higher on Wednesday as T-note yields stabilized. The 10-year T-note yield finished little changed at 4.79% on Wednesday after a weaker-than-expected Aug ADP employment report eased Fed rate hike expectations slightly, boosting stocks. Stock gains accelerated on dovish comments from New York Fed President Williams, who said inflation is continuing to trend down.
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Wednesday’s US economic news was mixed for stocks after July factory orders rose more than expected, but the Aug ADP employment change rose less than expected.
Stock index futures initially moved lower in overnight trade as US-Iran hostilities pushed crude oil prices to a 6-week high and the 10-year T-note yield up to a 2.75-year high of 4.82%.
The global bond sell-off generally continued on Wednesday, pushing bond yields to multi-year highs and undercutting stocks. The UK 10-year gilt yield surged to a 19-year high of 5.29%, the German 10-year bund yield jumped to a 15-year high of 3.39%, the Japanese 10-year JGB bond yield surged to a 30-year high of 3.04%, and the 10-year T-note yield rose to a 2.75-year high of 4.82%.
US MBA mortgage applications rose +0.8% in the week ended August 28, with the purchase mortgage sub-index up +2.2% and the refinancing mortgage sub-index down -1.1%. The average 30-year fixed-rate mortgage rose +1 bp to 6.79% from 6.78% in the prior week.
The US Aug ADP employment change rose by +38,000, showing a slightly weaker labor market than expectations of +47,000.
US July factory orders rose +0.9% m/m, stronger than expectations of +0.7% m/m. Also, July factory orders ex-transportation rose +0.6% m/m, stronger than expectations of +0.4% m/m.
New York Fed President John Williams said, "The data recently has been encouraging. I am actually seeing the trend in inflation moving slowly down as some of the effects of the tariffs move into the rearview mirror."
The Fed Beige Book was positive for stocks as it stated that economic activity in the Fed's 12 districts in the period through August 24 "increased modestly," with prices accelerating moderately in most districts. Also, “healthy labor demand was seen most frequently in manufacturing, construction and some service sectors, while retail and hospitality sectors saw falling labor demand."
Oct WTI crude oil prices (CLV26) climbed to a fresh 6-week high on Wednesday as fighting intensified between the US and Iran. The US carried out a second round of strikes in three days overnight, targeting radar systems and mine-laying capabilities along Iran's southern coast. Iran retaliated with drone and missile attacks on US bases across the Middle East. Also, Axios reported that the US attacked two Iranian tankers anchored off Iran’s north coast under a new “tanker for tanker” policy approved by President Trump to further deter Iranian attacks on tankers that move through the Strait of Hormuz. Gains in crude were limited as supply concerns abated slightly after US Energy Secretary Wright said that over 17 million bbl of oil went through the Strait of Hormuz on Monday.
Q2 earnings results are a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 489 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 60% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets settled lower on Wednesday. The Euro Stoxx 50 dropped to a 1-month low and closed down -0.11%. China's Shanghai Composite closed down -0.97%. Japan's Nikkei-225 Stock Average fell to a 4-week low and closed down -2.85%.
Interest Rates
December 10-year T-notes (ZNZ6) closed up by +1 tick on Wednesday. The 10-year T-note yield fell -0.4 bp to 4.794%. T-notes recovered from a 1.75-year nearest-futures low today and turned higher, and the 10-year T-note yield fell from a 2.75-year high of 4.816% and moved lower. Short covering emerged and pushed T-notes higher after the Aug ADP employment change rose less than expected, and after New York Fed President Williams said inflation is continuing to trend down. Gains in T-notes were limited after WTI crude oil climbed to a 6-week high, which boosted inflation expectations and is hawkish for Fed policy.
European government bond yields moved higher on Wednesday. The 10-year German bund yield climbed to a 15-year high of 3.395% and finished up +3.2 bp to 3.376%. The 10-year UK gilt yield jumped to a 19-year high of 5.289% and finished up +1.0 bp to 5.230%.
ECB Governing Council member and Bundesbank President Joachim Nagel warned that "inflation isn't close to our medium-term target" and said, "markets are pricing in a probability of more than 95% that we'll raise interest rates at our September meeting, and I'd say that the markets have a rather good understanding of how we're likely to respond at this stage."
Markets are discounting a 99% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Strength in chipmakers on Wednesday supported the broader market. Nvidia (NVDA) closed up more than +3% to lead gainers in the Dow Jones Industrials. Also, NXP Semiconductors (NXPI), Micron Technology (MU), and Qualcomm (QCOM) closed up more than +2%. In addition, Intel (INTC), Microchip Technology (MCHP), and ASML Holding NV (ASML) closed up more than 1%.
Airlines and cruise line operators moved higher on Wednesday after crude oil prices stabilized. United Airlines Holdings (UAL) closed up more than +3%, and Alaska Air Group (ALK), Delta Air Lines (DAL), Southwest Airlines (LUV), and Carnival (CCL) closed up more than +2%. Also, American Airlines Group (AAL) and Norwegian Cruise Line Holdings (NCLH) closed up more than +1%.
Palo Alto Networks (PANW) closed down more than -9% to lead cybersecurity stocks lower and losers in the S&P 500 and Nasdaq 100 after reporting Q4 subscription and support revenue of $2.67 billion, below the consensus of $2.68 billion. Also, CrowdStrike Holdings (CRWD) closed down more than -5%, and Cloudflare (NET), SentinelOne (S), and Fortinet (FTNT) closed down more than -4%. In addition, Zscaler (ZS) closed down more than -3% and Okta (OKTA) closed down more than -2%.
Dell Technologies (DELL) closed up more than +15% to lead gainers in the S&P 500 after reporting Q2 total net revenue of $46.97 billion, well above the consensus of $44,78 billion, and raising its 2027 revenue forecast to $192 billion from a previous forecast of $165 billion to $169 billion, stronger than the consensus of $173.76 billion.
Gitlab (GTLB) closed up more than +9% after boosting its 2027 revenue forecast to $1.13 billion from a previous forecast of $1.11 billion to $1.12 billion, better than the consensus of $1.12 billion.
SiriusXM (SIRI) closed up more than +7% after Deutsche Bank upgraded the stock to buy from hold with a price target of $45.
Brown-Forman (BF.B) closed up more than +3% after reporting a Q1 gross margin of 60.2%, better than the consensus of 58.6%.
Credo Technology (CRDO) closed down more than -20% despite reporting better-than-expected Q EPS as the company failed to exceed its Q1 adjusted gross margin estimate of 68%.
MongoDB (MDB) closed down more than -13% despite reporting better-than-expected Q2 EPS as revenue growth in the company’s Atlas product didn’t accelerate in Q2 versus Q1.
G-III Apparel Group Ltd (GIII) closed down more than -11% after reporting Q2 net sales of $554.1 million, weaker than the consensus of $570.3 million, and forecasting Q3 net sales of about $870 million, below the consensus of $899 million.
Edison International (EIX) closed down more than -6%, and PG&E (PCG) closed down more than -5% after analysts said it is unlikely that California legislators will hold a special session to pass a wildfire liability bill favorable to utilities.
Earnings Reports (9/3/2026)
Campbell's Company/The (CPB), Ciena Corp (CIEN), DocuSign Inc (DOCU), Guidewire Software Inc (GWRE), Lululemon Athletica Inc (LULU), Planet Labs PBC (PL), Samsara Inc (IOT), Toro Co/The (TTC), UiPath Inc (PATH), Zscaler Inc (ZS).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart

Stocks Settle Higher as Bond Yields Stabilize

(RTTNews) - American Airlines (AAL) is stepping up its focus on premium travellers with the launch of its first retrofitted Boeing 777-300ER, one of the airline's largest aircraft and a key part of its long-haul international network.
The updated aircraft has 144 premium seats, including 70 lie-flat Flagship Suite seats with sliding doors at the front of the plane. American is replacing traditional international first class on many aircraft with a larger premium cabin as it looks to attract more high-spending travellers.
The aircraft also includes 44 Premium Economy seats with added comfort features and 30 Main Cabin Extra seats with additional legroom. The remaining 186 seats are in the standard Main Cabin.
American plans to retrofit all 20 of its Boeing 777-300ER aircraft by next year. The airline will also introduce a similar, smaller premium layout on its Airbus A321XLR aircraft.
The move is part of American's effort to compete more closely with Delta Air Lines and United Airlines, which have invested heavily in premium cabins and services. American is also working to strengthen its loyalty programme, improve punctuality and expand its international network.

American Airlines Expands Premium Offering With Retrofitted Boeing 777s

The S&P 500 Index ($SPX) (SPY) is up by +0.50% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.79%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up by +0.17%. E-mini S&P futures (ESU26) are up +0.49%, and September E-mini Nasdaq futures (NQU26) are up +0.15%.
Stock index futures recovered from overnight losses and are moving higher today as a retreat in crude oil prices knocked bond yields lower. Crude oil prices gave up an overnight advance and turned lower today when US Energy Secretary Wright said that over 17 million bbl of oil went through the Strait of Hormuz on Monday, easing supply concerns. That knocked the 10-year T-note yield down -1 bp to 4.79%, benefiting stocks. Gains in stocks accelerated on dovish comments for New York Fed President Williams, who said inflation is continuing to trend down.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Today’s US economic news was mixed for stocks after July factory orders rose more than expected, but the Aug ADP employment change rose less than expected.
Stock index futures initially moved lower in overnight trade as US-Iran hostilities pushed crude oil prices to a 6-week high and the 10-year T-note yield up to a 2.75-year high of 4.82%. Stocks were under pressure as global bond yields stayed elevated on US-Iran hostilities, which extended crude oil’s advance and threatened to worsen the inflation outlook.
The global bond sell-off generally continued today, pushing bond yields to multi-year highs and undercutting stocks. The UK 10-year gilt yield surged to a 19-year high of 5.29%, the German 10-year bund yield jumped to a 15-year high of 3.39%, the Japanese 10-year JGB bond yield surged to a 30-year high of 3.04%, and the 10-year T-note yield rose to a 2.75-year high of 4.82%.
US MBA mortgage applications rose +0.8% in the week ended August 28, with the purchase mortgage sub-index up +2.2% and the refinancing mortgage sub-index down -1.1%. The average 30-year fixed-rate mortgage rose +1 bp to 6.79% from 6.78% in the prior week.
The US Aug ADP employment change rose by +38,000, showing a slightly weaker labor market than expectations of +47,000.
US July factory orders rose +0.9% m/m, stronger than expectations of +0.7% m/m. Also, July factory orders ex-transportation rose +0.6% m/m, stronger than expectations of +0.4% m/m.
New York Fed President John Williams said, "The data recently has been encouraging. I am actually seeing the trend in inflation moving slowly down as some of the effects of the tariffs move into the rearview mirror."
Oct WTI crude oil prices (CLV26) fell from a 6-week high today and turned lower as supply concerns abated after US Energy Secretary Wright said that over 17 million bbl of oil went through the Strait of Hormuz on Monday. Crude prices initially rallied in overnight trade as fighting intensified between the US and Iran. The US carried out a second round of strikes in three days overnight, targeting radar systems and mine-laying capabilities along Iran's southern coast. Iran retaliated with drone and missile attacks on US bases across the Middle East. Also, Axios reported that the US attacked two Iranian tankers anchored off Iran’s north coast under a new “tanker for tanker” policy approved by President Trump to further deter Iranian attacks on tankers that move through the Strait of Hormuz.
Q2 earnings results are a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 489 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 67% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets are lower today. The Euro Stoxx 50 dropped to a 1-month low and is down -0.01%. China's Shanghai Composite closed down -0.97%. Japan's Nikkei-225 Stock Average fell to a 4-week low and closed down -2.85%.
Interest Rates
December 10-year T-notes (ZNZ6) are up by +2 ticks today. The 10-year T-note yield is down -0.4 bp to 4.794%. T-notes recovered from a 1.75-year nearest-futures low today and turned higher, and the 10-year T-note yield fell from a 2.75-year high of 4.816% and moved lower. Short covering emerged and pushed T-notes higher after WTI crude fell from a 6-week high and turned lower, easing inflation expectations. T-notes remained slightly higher after the Aug ADP employment change rose less than expected, and after New York Fed President Williams said inflation is continuing to trend down.
European government bond yields are moving higher today. The 10-year German bund yield climbed to a 15-year high of 3.395% and is up +3.3 bp to 3.376%. The 10-year UK gilt yield jumped to a 19-year high of 5.289% and is up +1.4 bp to 5.234%.
ECB Governing Council member and Bundesbank President Joachim Nagel warned that "inflation isn't close to our medium-term target" and said, "markets are pricing in a probability of more than 95% that we'll raise interest rates at our September meeting, and I'd say that the markets have a rather good understanding of how we're likely to respond at this stage."
Markets are discounting a 99% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Strength in chipmakers today is providing support to the broader market. Nvidia (NVDA) is up more than +3% to lead gainers in the Nasdaq 100 and Dow Jones Industrials. Also, NXP Semiconductors (NXPI) is up more than +2%, and Microchip Technology (MCHP), Analog Devices (ADI), Qualcomm (QCOM), and Texas Instruments (TXN) are up more than 1%.
Airlines and cruise line operators are moving higher today after crude oil prices turned lower, a positive factor for the companies’ profitability. United Airlines Holdings (UAL) is up more than +4%, and Alaska Air Group (ALK) is up more than +3%. Also, American Airlines Group (AAL), Delta Air Lines (DAL), Southwest Airlines (LUV), and Norwegian Cruise Line Holdings (NCLH) are up more than +2%. In addition, Carnival (CCL) and Royal Caribbean Cruises (RCL) are up more than +1%.
Palo Alto Networks (PANW) is down more than -7% to lead cybersecurity stocks lower and lead losers in the Nasdaq 100 after reporting Q4 subscription and support revenue of $2.67 billion, below the consensus of $2.68 billion. Also, CrowdStrike Holdings (CRWD) and Fortinet (FTNT) are down more than -4%, and Okta (OKTA) is down more than +3%. In addition, Cloudflare (NET) and SentinelOne (S) are down more tan -2%, and Zscaler (ZS) is down more than -1%.
Gitlab (GTLB) is up more than +16% after boosting its 2027 revenue forecast to $1.13 billion from a previous forecast of $1.11 billion to $1.12 billion, better than the consensus of $1.12 billion.
SiriusXM (SIRI) is up more than +5% after Deutsche Bank upgraded the stock to buy from hold with a price target of $45.
Dell Technologies (DELL) is up more than +4% after reporting Q2 total net revenue of $46.97 billion, well above the consensus of $44,78 billion, and raising its 2027 revenue forecast to $192 billion from a previous forecast of $165 billion to $169 billion, stronger than the consensus of $173.76 billion.
Brown-Forman (BF.B) is up more than +3% after reporting a Q1 gross margin of 60.2%, better than the consensus of 58.6%.
Credo Technology (CRDO) is down more than -18% despite reporting better-than-expected Q EPS as the company failed to exceed its Q1 adjusted gross margin estimate of 68%.
MongoDB (MDB) is down more than -9% despite reporting better-than-expected Q2 EPS as revenue growth in the company’s Atlas product didn’t accelerate in Q2 versus Q1.
PG&E (PCG) is down more than -8% to lead losers in the S&P 500, and Edison International (EIX) is down more than -6% after analysts said it is unlikely that California legislators will hold a special session to pass a wildfire liability bill favorable to utilities.
G-III Apparel Group Ltd (GIII) is down more than -7% after reporting Q2 net sales of $554.1 million, weaker than the consensus of $570.3 million, and forecasting Q3 net sales of about $870 million, below the consensus of $899 million.
Earnings Reports (9/2/2026)
Broadcom Inc (AVGO), Brown-Forman Corp (BF/B), Five Below Inc (FIVE), Hewlett Packard Enterprise Co (HPE), NetApp Inc (NTAP), Ollie's Bargain Outlet Holding (OLLI), PVH Corp (PVH), Snowflake Inc (SNOW).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Push Higher as Crude Oil and Bond Yields Stabilize

The S&P 500 Index ($SPX) (SPY) closed down by -0.33% on Monday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.70%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up by +0.08%. E-mini S&P futures (ESU26) fell -0.28%, and September E-mini Nasdaq futures (NQU26) rose +0.07%.
Stock indices settled mostly lower on Monday, with the Dow Jones Industrial Average falling to a 1-week low on a flare-up in geopolitical risks. The broader market was under pressure on Monday as renewed Middle East tensions boosted crude oil prices, raised inflation expectations, pushed bond yields higher, and complicated the US inflation outlook. WTI crude oil rose more than +2% on Monday after the US and Iran exchanged strikes for the first time in about a month. The 10-year T-note yield jumped to a 19-month high of 4.77% on Monday.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks also had some negative carryover from last Friday when Fed Chair Warsh vowed to bring inflation back to target and said financial conditions aren’t restrictive, bolstering the chance of a Fed rate hike next month. The chance of a Fed interest rate hike at next month’s FOMC meeting rose to 65% on Monday, up from 36% before he spoke last Friday.
On the positive side, energy producers rose on Monday after crude oil prices rallied and cryptocurrency stocks rose after Bitcoin climbed more than 2%. Cybersecurity stocks also rose on Monday, supporting gains in the Nasdaq 100.
Chinese economic news was mixed after China's Aug manufacturing PMI rose +0.6 to 49.8, stronger than expectations of 49.5. However, the Aug non-manufacturing PMI was unchanged at 49.0, weaker than expectations of an increase to 49.4.
Oct WTI crude oil prices (CLV26) jumped more than +2% on Monday to a 1-week high as Middle East tensions flared. The US Central Command said it targeted Iranian rocket launchers preparing to send mines into the Strait of Hormuz, and Iran retaliated by firing missiles and drones at US air bases in Jordan, while the United Arab Emirates said it intercepted drones from Iran. Crude prices added to their gains on Monday when Axios reported that President Trump is weighing limited strikes against Iran to prevent it from reconstituting its radar and missile capabilities to attack ships in the Strait of Hormuz.
Q2 earnings results are a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 486 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 65% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets settled mixed on Monday. The Euro Stoxx 50 closed down -1.01%. China's Shanghai Composite rose to a 1.5-week high and closed up +0.85%. Japan's Nikkei-225 Stock Average closed down -0.14%.
Interest Rates
September 10-year T-notes (ZNU6) closed down -6.5 ticks on Monday. The 10-year T-note yield rose +3.6 bp to 4.754%. T-notes tumbled to a 19-month nearest-futures low on Monday, and the 10-year T-note yield rose to a 19-month high of 4.766%. T-notes retreated on Monday after the +2% surge in WTI crude oil prices to a 1-week high boosted inflation expectations. T-notes are also being pressured by negative carryover from last Friday when hawkish comments from Fed Chair Warsh pushed the chances of a Fed rate hike at next month’s FOMC meeting up to 65% on Monday from 36% before he spoke.
European government bond yields moved higher on Monday. The 10-year German bund yield jumped to a 15-year high of 3.327% and finished up +4.5 bp to 3.324%. The 10-year UK gilt did not trade on Monday, with markets in the UK closed for a holiday.
German Aug CPI (EU harmonized) rose +0.2% m/m and +2.9% y/y, weaker than expectations of +0.3% m/m and +3.1% y/y.
Markets are discounting a 99% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Airlines and cruise line operators fell on Monday after WTI crude oil rose more than +2% to a 1-week high, boosting fuel costs and curbing the companies’ profitability. Carnival (CCL) and Royal Caribbean Cruises (RCL) closed down more than -3%, and United Airlines Holdings (UAL), Delta Air Lines (DAL), Alaska Air Group (ALK), Southwest Airlines (LUV), and Norwegian Cruise Line Holdings (NCLH) closed down more than -2%. Also, American Airlines Group (AAL) closed down more than -1%.
Housing stocks and building suppliers moved lower on Monday after the 10-year T-note yield rose to a 19-month high, boosting mortgage rates and undercutting housing demand. DR Horton (DHI), Lennar (LEN), and KB Home (KBH) closed down more than -2%, and Pulte Group (PHM), Toll Brothers (TOL), and Builders Firstsource (BLDR) closed down more than -1%.
Energy producers and service providers moved higher on Monday after WTI crude oil rose more than +2% to a 1-week high. SLB Ltd (SLB) closed up more than +4%, and ExxonMobil Holdings (XOM), and Devon Energy (DVN) closed up more than +2%. Also, Chevron (CVX) closed up more than +2% to lead gainers in the Dow Jones Industrials, and Apa Corp (APA), Diamondback Energy (FANG), Baker Hughes (BKR), ConocoPhillips (COP), Occidental Petroleum (OXY), Halliburton (HAL), Marathon Petroleum (MPC), Phillips 66 (PSX), and Valero Energy (VLO) closed up more than +1%.
Cryptocurrency stocks rose on Monday after Bitcoin (^BTCUSD) jumped more than +2%. Circle Internet Group (CRCL) closed up more than +9%, and Coinbase Global (COIN) and Galaxy Digital Holdings (GLXY) closed up more than +5%. Also, Strategy (MSTR) and Iren Ltd (IREN) closed up more than +4%, and MARA Holdings (MARA) closed up +0.66%.
CrowdStrike Holdings (CRWD) closed up more than +5% to lead gainers in the S&P 500 and Nasdaq 100 and lead cybersecurity stocks higher after announcing a strategic partnership with Clear Secure that integrates the CLEAR1 identity platform with the CrowdStrike Falcon platform. Also, Okta (OKTA) closed up more than +4%, and Palo Alto Networks (PANW), Zscaler (ZS), Fortinet (FTNT), and SentinelOne (S) closed up more than +2%. In addition, Cloudflare (NET) closed up more than +1%.
Edison International (EIX) closed down more than -23% to lead losers in the S&P 500, and PG&E Corp (PCG) closed down more than -19% after California lawmakers introduced a bill that would update the state’s wildfire response without shifting liability away from publicly traded utilities.
Aon Plc (AON) closed down more than -9% on reports that it will acquire KKR & Co’s USI Insurance Services for $17 billion.
Howmet Aerospace (HWM) closed down more than -7%, and GE Vernova (GEV) closed down more than -1% after Elon Musk said SpaceX and Tesla are each building 100 GW/year of solar production capacity, which will reduce the companies’ reliance on natural-gas-powered turbines.
Pinterest (PINS) closed down more than -6% after announcing CFO Donnelly will step down effective October 30 after three years with the company.
CNH Industrial (CNH) closed up more than +1% after Baird upgraded the stock to outperform from neutral with a price target of $15.
Science Applications International (SAIC) closed up more than +1% after reporting Q2 revenue of $1.88 billion, better than the consensus of $1.76 billion, and raising its 2027 revenue forecast to $7.2 billion to $7.3 billion from a previous forecast of $7.0 billion to $7.2 billion, stronger than the consensus of $7.19 billion.
Kaiser Aluminum (KALU) closed up more than +1% after UBS upgraded the stock to buy from neutral with a price target of $184.
Earnings Reports (9/1/2026)
Credo Technology Group Holding (CRDO), Dell Technologies Inc (DELL), Gitlab Inc (GTLB), Medtronic PLC (MDT), MongoDB Inc (MDB), Palo Alto Networks Inc (PANW).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Finish Mostly Lower as Rising Crude Boosts Bond Yields

American Airlines (AAL) closed at $13.43 in the latest trading session, marking a -1.54% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.33%. Elsewhere, the Dow lost 0.7%, while the tech-heavy Nasdaq lost 0.12%.
Coming into today, shares of the world's largest airline had lost 10.68% in the past month. In that same time, the Transportation sector lost 1.96%, while the S&P 500 gained 3.87%.
The investment community will be paying close attention to the earnings performance of American Airlines in its upcoming release. In that report, analysts expect American Airlines to post earnings of -$0.26 per share. This would mark a year-over-year decline of 52.94%. Meanwhile, our latest consensus estimate is calling for revenue of $16.12 billion, up 17.77% from the prior-year quarter.
AAL's full-year Zacks Consensus Estimates are calling for earnings of -$0.16 per share and revenue of $62.99 billion. These results would represent year-over-year changes of -144.44% and +15.3%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for American Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 977.7% downward. American Airlines is currently a Zacks Rank #3 (Hold).
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 176, this industry ranks in the bottom 29% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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American Airlines (AAL) Registers a Bigger Fall Than the Market: Important Facts to Note

The S&P 500 Index ($SPX) (SPY) is down by -0.50% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down by -0.67%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -0.29%. E-mini S&P futures (ESU26) are down -0.48%, and September E-mini Nasdaq futures (NQU26) are down -0.30%.
Stock indices are under pressure today, with the Dow Jones Industrial Average falling to a 1-week low on a flare-up in geopolitical risks. Renewed Middle East tensions are boosting crude oil prices, raising inflation expectations, bond yields, and complicating the US inflation outlook. WTI crude oil is up more than +2% today after the US and Iran exchanged strikes for the first time in about a month. The 10-year T-note yield jumped to a 19-month high today at 4.76%.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks also have some negative carryover from last Friday when Fed Chair Warsh vowed to bring inflation back to target and said financial conditions aren’t restrictive, bolstering the chance of a Fed rate hike next month. The chance of a Fed interest rate hike at next month’s FOMC meeting is 65% today, up from 36% before he spoke last Friday.
Chinese economic news was mixed after China's Aug manufacturing PMI rose +0.6 to 49.8, stronger than expectations of 49.5. However, the Aug non-manufacturing PMI was unchanged at 49.0, weaker than expectations of an increase to 49.4.
Oct WTI crude oil prices (CLV26) jumped more than +2% today to a 1-week high as Middle East tensions flared. The US Central Command said it targeted Iranian rocket launchers preparing to send mines into the Strait of Hormuz, and Iran retaliated by firing missiles and drones at US air bases in Jordan, while the United Arab Emirates said it intercepted drones from Iran. Crude prices added to their gains today when President Trump said the US will respond to Iran's latest attacks on US forces.
Q2 earnings results are a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 486 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 65% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.65%. China's Shanghai Composite rose to a 1.5-week high and closed up +0.85%. Japan's Nikkei-225 Stock Average closed down -0.14%.
Interest Rates
September 10-year T-notes (ZNU6) are down -5 ticks today. The 10-year T-note yield is up +3.6 bp to 4.754%. T-notes tumbled to a 19-month nearest-futures low today, and the 10-year T-note yield rose to a 19-month high of 4.764%. T-notes are sliding today as the +3% surge in WTI crude oil prices to a 1-week high boosts inflation expectations. T-notes are also being pressured by negative carryover from last Friday when hawkish comments from Fed Chair Warsh pushed the chances of a Fed rate hike at next month’s FOMC meeting up to 65% today from 36% before he spoke.
European government bond yields are moving higher today. The 10-year German bund yield jumped to a 15-year high of 3.324% and is up +3.7 bp to 3.316%. The 10-year UK gilt is not trading, with markets in the UK closed today for a holiday.
German Aug CPI (EU harmonized) rose +0.2% m/m and +2.9% y/y, weaker than expectations of +0.3% m/m and +3.1% y/y.
Markets are discounting a 98% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Airlines and cruise line operators are falling today, with WTI crude oil up more than +2% at a 1-week high, which boosts fuel costs and curbs the companies’ profitability. American Airlines Group (AAL), United Airlines Holdings (UAL), Delta Air Lines (DAL), Alaska Air Group (ALK), Southwest Airlines (LUV), Carnival (CCL), Royal Caribbean Cruises (RCL), and Norwegian Cruise Line Holdings (NCLH) are all down more than -2%.
Housing stocks and building suppliers are weaker today as the 10-year T-note yield rises to a 19-month high, boosting mortgage rates and undercutting housing demand. DR Horton (DHI), Lennar (LEN), Pulte Group (PHM), KB Home (KBH), Toll Brothers (TOL), Builders Firstsource (BLDR), and Home Depot (HD) are down more than -1%.
Energy producers and service providers are moving higher today, with WTI crude oil up +2% at a 1-week high. SLB Ltd (SLB) is up more than +3%, and ExxonMobil Holdings (XOM), Devon Energy (DVN), and Halliburton (HAL) are up more than +2%. Also, Chevron (CVX) is up more than +2% to lead gainers in the Dow Jones Industrials, and Diamondback Energy (FANG), Baker Hughes (BKR), ConocoPhillips (COP), and Occidental Petroleum (OXY) are up more than +1%.
Edison International (EIX) is down more than -23% to lead losers in the S&P 500 and PG&E Corp (PCG) is down more than -19% and after California lawmakers introduced a bill that would update the state’s wildfire response without shifting liability away from publicly traded utilities.
Howmet Aerospace (HWM) is down more than 7%, and GE Vernova (GEV) is down more than 2% after Elon Musk said SpaceX and Tesla are each building 100 GW/year of solar production capacity, which will reduce the companies’ reliance on natural-gas-powered turbines.
Aon Plc (AON) is down more than -7% on reports that it will acquire KKR & Co’s USI Insurance Services for $17 billion.
Pinterest (PINS) is down more than -5% after announcing CFO Donnelly will step down effective October 30 after three years with the company.
CrowdStrike Holdings (CRWD) is up more than +4% to lead gainers in the S&P 500 and Nasdaq 100 after announcing a strategic partnership with Clear Secure that integrates the CLEAR1 identity platform with the CrowdStrike Falcon platform.
CNH Industrial (CNH) is up more than +3% after Baird upgraded the stock to outperform from neutral with a price target of $15.
Science Applications International (SAIC) is up more than +2% after reporting Q2 revenue of $1.88 billion, better than the consensus of $1.76 billion, and raising its 2027 revenue forecast to $7.2 billion to $7.3 billion from a previous forecast of $7.0 billion to $7.2 billion, stronger than the consensus of $7.19 billion.
Kaiser Aluminum (KALU) is up more than +1% after UBS upgraded the stock to buy from neutral with a price target of $184.
Earnings Reports (8/31/2026)
Critical Metals Corp (CRML), Science Applications International Corp (SAIC).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Fall as Rising Geopolitical Risks Boost Crude Oil and Bond Yields

The S&P 500 Index ($SPX) (SPY) is down by -0.42% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down by -0.55%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -0.23%. E-mini S&P futures (ESU26) are down -0.40%, and September E-mini Nasdaq futures (NQU26) are down -0.18%.
Stock indices are under pressure today, with the Dow Jones Industrial Average falling to a 1-week low. Renewed Middle East tensions are boosting crude oil prices, raising inflation expectations, bond yields, and complicating the US inflation outlook. WTI crude oil is up more than +2% today after the US and Iran exchanged strikes for the first time in about a month. The 10-year T-note yield jumped to a 19-month high today at 4.75%.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks also have some negative carryover from last Friday when Fed Chair Warsh vowed to bring inflation back to target and said financial conditions aren’t restrictive, bolstering the chance of a Fed rate hike next month. The chance of a Fed interest rate hike at next month’s FOMC meeting is 64% today, up from 36% before he spoke last Friday.
Chinese economic news was mixed after China's Aug manufacturing PMI rose +0.6 to 49.8, stronger than expectations of 49.5. However, the Aug non-manufacturing PMI was unchanged at 49.0, weaker than expectations of an increase to 49.4.
Oct WTI crude oil prices (CLV26) jumped more than +2% today to a 1-week high as Middle East tensions flared. The US Central Command said it targeted Iranian rocket launchers preparing to send mines into the Strait of Hormuz, and Iran retaliated by firing missiles and drones at US air bases in Jordan, while the United Arab Emirates said it intercepted drones from Iran. Crude prices added to their gains today when President Trump said the US will respond to Iran's latest attacks on US forces.
Q2 earnings results are a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 486 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 64% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.21%. China's Shanghai Composite rose to a 1.5-week high and closed up +0.85%. Japan's Nikkei-225 Stock Average closed down -0.14%.
Interest Rates
September 10-year T-notes (ZNU6) are down -5 ticks today. The 10-year T-note yield is up +3.2 bp to 4.750%. T-notes tumbled to a 19-month nearest-futures low today, and the 10-year T-note yield rose to a 19-month high of 4.754%. T-notes are sliding today as the +3% surge in WTI crude oil prices to a 1-week high boosts inflation expectations. T-notes are also being pressured by negative carryover from last Friday when hawkish comments from Fed Chair Warsh pushed the chances of a Fed rate hike at next month’s FOMC meeting up to 63% from 36% before he spoke.
European government bond yields are moving higher today. The 10-year German bund yield jumped to a 15-year high of 3.317% and is up +3.5 bp to 3.314%. The 10-year UK gilt is not trading, with markets in the UK closed today for a holiday.
German Aug CPI (EU harmonized) rose +0.2% m/m and +2.9% y/y, weaker than expectations of +0.3% m/m and +3.1% y/y.
Markets are discounting a 96% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Airlines and cruise line operators are falling today, with WTI crude oil up more than +2% at a 1-week high, which boosts fuel costs and curbs the companies’ profitability. American Airlines Group (AAL), United Airlines Holdings (UAL), Delta Air Lines (DAL), Alaska Air Group (ALK), Southwest Airlines (LUV), Carnival (CCL), Royal Caribbean Cruises (RCL), and Norwegian Cruise Line Holdings (NCLH) are all down more than -2%.
Energy producers and service providers are moving higher today, with WTI crude oil up +2% at a 1-week high. SLB Ltd (SLB) and Halliburton (HAL) are up more than +4%, and Devon Energy (DVN) and Diamondback Energy (FANG) are up more than +3%. Also, APA Corp (APA), Baker Hughes (BKR), ConocoPhillips (COP), ExxonMobil Holdings (XOM), and Occidental Petroleum (OXY) are up more than +2%, and Chevron (CVX) is up more than +2% to lead gainers in the Dow Jones Industrials. In addition, Marathon Petroleum (MPC), Phillips 66 (PSX), and Valero Energy (VLO) are up more than +1%.
Edison International (EIX) is down more than -19% to lead losers in the S&P 500 and PG&E Corp (PCG) is down more than -18% and after California lawmakers introduced a bill that would update the state’s wildfire response without shifting liability away from publicly traded utilities.
Howmet Aerospace (HWM) is down more than 6% and GE Vernova (GEV) is down more than 2% after Elon Musk said SpaceX and Tesla are each building 100 GW/year of solar production capacity, which will reduce the companies’ reliance on natural-gas-powered turbines.
Pinterest (PINS) is down more than -4% after announcing CFO Donnelly will step down effective October 30 after three years with the company.
CrowdStrike Holdings (CRWD) is up more than +5% to lead gainers in the S&P 500 and Nasdaq 100 after announcing a strategic partnership with Clear Secure that integrates the CLEAR1 identity platform with the CrowdStrike Falcon platform.
Science Applications International (SAIC) is up more than +5% after reporting Q2 revenue of $1.88 billion, better than the consensus of $1.76 billion, and raising its 2027 revenue forecast to $7.2 billion to $7.3 billion from a previous forecast of $7.0 billion to $7.2 billion, stronger than the consensus of $7.19 billion.
Kaiser Aluminum (KALU) is up more than +4% after UBS upgraded the stock to buy from neutral with a price target of $184.
CNH Industrial (CNH) is up more than +1% after Baird upgraded the stock to outperform from neutral with a price target of $15.
Earnings Reports (8/31/2026)
Critical Metals Corp (CRML), Science Applications International Corp (SAIC).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart

Stocks Pressured as Soaring Crude Prices Boost Bond Yields

Key Points
The U.S.-Iran war has raged for six months now, appearing to either worsen or, at best, turn into a stalemate.
That may sound like bad news for airline stocks, but soaring jet fuel prices have become a manageable issue.
Plus, for Delta Air Lines and United Airlines, the "premiumization" trend is helping to keep demand high.
The Iran war has been going on for six months, with seemingly no end in sight. In the best-case scenario, the situation turns into a stalemate. Worst case, tensions and conflict escalate. Either way, it's not looking good for the Strait of Hormuz fully opening to shipping traffic.
With this, crude oil prices appear primed to remain elevated, which means jet fuel prices will remain high. Is this a sign to get out of airline stocks? Not necessarily. In large part, an industry trend has indirectly helped to lessen the impact of this major headwind.
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Rising jet fuel prices lead to differing outcomes for the airlines
When the conflict started, shares in major and low-cost airlines alike experienced a sharp pullback. That's unsurprising, as soaring jet fuel prices typically reduce airlines' profitability, even when they raise ticket prices in response. Worse yet, the conflict served as the final nail in the coffin for one particular low-cost airline.
On May 2, already-bankrupt Spirit Airlines completely suspended operations. Yet while some airlines have struggled with this headwind, for many other carriers, both low-cost and legacy, it's become a manageable issue.
Premiumization proves key to legacy carrier resilience
For low-cost carrier Allegiant (NASDAQ: ALGT), strategies like reducing off-peak flying, in tandem with higher ticket prices, have helped mitigate rising fuel costs. However, even after bouncing back during the summer, shares in this particular low-cost carrier have coughed back these gains.
In contrast, shares of United Airlines Holdings (NASDAQ: UAL) and Delta Air Lines (NYSE: DAL) have bounced back, with Delta trading above pre-war price levels. Why? These carriers have both raised prices to offset high fuel costs and have leaned into "premiumization," or a greater focus on affluent travelers, resulting in increased demand for premium tickets, making up for weakening demand from economy-tier passengers.
While the ongoing conflict could mean further uncertainty for low-cost carriers and for legacy carriers benefiting less from premiumization, like American Airlines, barring major changes to their respective financial performances, I wouldn't view the Iran war as a reason to sell United or Delta shares.
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Should You Dump Airline Stocks With the Iran War Still Simmering?

The Horizon Small/Mid Cap Core Equity ETF is seeing unusually high volume in afternoon trading Friday, with over 335,000 shares traded versus three month average volume of about 39,000. Shares of SMOX were down about 0.7% on the day.
Components of that ETF with the highest volume on Friday were American Airlines Group, trading up about 0.6% with over 17.7 million shares changing hands so far this session, and Hecla Mining, down about 2.7% on volume of over 9.1 million shares. Versant Media Group is the component faring the best Friday, up by about 4.9% on the day, while Semtech is lagging other components of the Horizon Small/Mid Cap Core Equity ETF, trading lower by about 5.8%.

Friday's ETF with Unusual Volume: SMOX

SkyWest, Inc. (SKYW) looks cheap from a valuation standpoint. Considering the trailing 12-month price-to-book (P/B)ratio, SkyWest is trading at a discount compared to the industry.
The stock has a trailing 12-month P/B-TTM of 1.46X compared with 2.85X for the industry over the past five years. These factors indicate that the stock’s valuation is attractive. SKYW has a Value Score of A.
SKYW P/B Ratio (Trailing 12 months) Vs. Industry
Now, the question is whether it is worth buying, holding, or selling the SkyWest stock at current prices. Let us delve deeper to find out.
Tailwinds Working in Favor of SkyWest Stock
SkyWest's top line benefits from flying contract rate increases. As of June 30, 2026, SkyWest had cumulative deferred revenues of $213.82 million under its flying contracts. Revenues from flying agreements (contributing 96.5% to the top line) grew 7.2% year over year during the first six months of 2026. Departures increased 1.7% on a year-over-year basis in the first six months of 2026.
SkyWest's fleet-modernization efforts to cater to the improvement in travel demand are commendable. In a bid to modernize its fleet, SKYW has fleet-related agreements with airline heavyweights like United Airlines UAL and Delta Air Lines DAL.
Concurrent with its second-quarter 2026 results, SkyWest announced that it has inked a deal to purchase and operate 11 new E175 aircraft under a multi-year flying contract for American Airlines AAL. The 11 new E175 aircraft are anticipated to replace 11 CRJ700s SkyWest is currently flying under contract with American Airlines. SKYW is scheduled to purchase the 11 E175s from Embraer with anticipated delivery dates in 2026 and 2027.
Further, UAL is scheduled to deliver eight E175 planes in 2026. Alaska Airlines is expected to deliver one E175 in 2026. DAL is likely to deliver 10 E175 planes in 2027 and six in 2028. By 2027-end, SkyWest anticipates having nearly 300 E175 aircraft in its fleet.
As previously announced, SkyWest entered into a purchase agreement with Embraer, which secures delivery positions for 33 additional E175s from 2028 through 2032 for potential future flying opportunities. SkyWest also secured purchase rights on 50 additional E175s from Embraer.
SkyWest’s long-term debt level has decreased to $1.64 billion at the end of second-quarter 2026 from $2.00 billion at the end of second-quarter 2025. This is a positive indicator for SKYW's prospects as debt reduction implies a decrease in total liabilities on the company's balance sheet, which is likely to strengthen solvency and improve financial leverage ratios.
Long-Term Debt to Capitalization
SKYW’s continued efforts of share repurchases reflect a disciplined capital-allocation policy. As a reflection of its shareholder-friendly stance, during the first half of 2026, SkyWest repurchased 1.6 million shares for $150 million. As of June 30, 2026, SkyWest had almost $63 million available under its current share repurchase program. Concurrent with its second-quarter earnings release, SKYW’s board of directors approved a $250 million increase to the existing stock repurchase program. Buybacks not only reduce the total outstanding share count, thereby increasing earnings per share, but also signal management's belief in the intrinsic value of the stock.
What Do Earnings Estimates Say for SkyWest?
The positive sentiment surrounding SkyWest stock is evident from the fact that the Zacks Consensus Estimate for the third quarter of 2026 and the fourth quarter of 2026 earnings has been revised northward in the past 60 days. The consensus mark for 2026 and 2027 earnings has also been projected upward in the past 60 days.
The favorable estimate revisions indicate brokers’ confidence in the stock.
Image Source: Zacks Investment Research
Headwinds Weighing on SkyWest Stock
SkyWest's bottom line continues to be weighed down by a rise in operating expenses. The upside is due to an increase in employee compensation, which includes higher labor pay scales, increased maintenance, as well as costs related to aircraft maintenance, materials and repair, higher production and higher pilot training costs. SkyWest witnessed a consistent increase in operating expenses from $2.82 billion in 2022 to $2.83 billion in 2023, to $3.03 billion in 2024, to $3.44 billion in 2025. In second-quarter 2026, operating expenses were $947 million, up 9% year over year, owing to an expected rise in incremental direct operating costs associated with increased production in the reported quarter and a rise in the fuel cost per gallon.
Macroeconomic uncertainty and pilot shortages continue to plague regional carriers like SkyWest. The competition from larger airlines exacerbates the shortage of qualified pilots for regional carriers. This shortage limits the number of flights regional airlines can operate and can lead to increased operating costs due to the need to offer competitive salaries and benefits.
Stock prices of regional airline companies are notoriously volatile. As such, shares of SKYW may not be suitable for investors who are not comfortable with often substantial day-to-day volatility.
Not an Opportune Time to Buy SkyWest Stock
Apart from being attractively valued at present, SkyWest's fleet-modernization efforts remain commendable. In a bid to modernize its fleet, SKYW has fleet-related agreements with airline heavyweights like United Airlines, Delta Air Lines, American Airlines and Alaska Airlines. By 2027-end, SKYW is scheduled to have nearly 300 E175 aircraft. SKYW’s consistent efforts to reward shareholders with share repurchases should boost investor confidence and positively impact the bottom line.
Despite these positives, we advise investors not to buy SKYW stock now, as it continues to be hurt by a consistent rise in operating expenses. The macroeconomic uncertainty and pilot shortages are also hurting SKYW's prospects. Share price volatility continues to be a cause for worry. Considering all these factors, we advise investors to wait for a better entry point and not buy SKYW now. For those who already own the stock, it will be prudent to stay invested. The company’s current Zacks Rank #3 (Hold) justifies our analysis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).