American Airlines vs United Airlines

Explore a detailed comparison of American Airlines and United Airlines stock. This page provides an overview of their respective business models, evaluates their financial performance, and contextualises their market positions within the aviation industry. Gain insights into key operational and strategic differences affecting investor considerations. Educational content, not financial advice.

Explore a detailed comparison of American Airlines and United Airlines stock. This page provides an overview of their respective business models, evaluates their financial performance, and contextuali...

Comparison Snapshot

Key Financial Metrics

AAL

Metric

UAL

$9.16B

Market Cap

$35.35B

16.36%

Potential Profit

18.61%

Buy

Analyst Rating

Buy

Why It's Moving

UAL Surges on Stellar Earnings, Spotlighting Robust Premium Travel Demand

Q4 revenue hit $15.4 billion, exceeding forecasts by $50 million and signaling unyielding appetite for premium travel despite a prior government shutdown.
Full-year adjusted EPS reached $10.62, up 8% year-over-year, with record 181 million passengers carried and the lowest seat cancellation rate in company history.
Rapid Starlink rollout equips over 300 regional aircraft already, with 500 more mainline planes targeted by year-end, enhancing in-flight tech and customer appeal.
sentiment_tag

Sentiment:

🐃Bullish

UAL Surges on Stellar Earnings, Spotlighting Robust Premium Travel Demand

Q4 revenue hit $15.4 billion, exceeding forecasts by $50 million and signaling unyielding appetite for premium travel despite a prior government shutdown.
Full-year adjusted EPS reached $10.62, up 8% year-over-year, with record 181 million passengers carried and the lowest seat cancellation rate in company history.
Rapid Starlink rollout equips over 300 regional aircraft already, with 500 more mainline planes targeted by year-end, enhancing in-flight tech and customer appeal.
sentiment_tag

Sentiment:

🐃Bullish

Investment Analysis

American Airlines

AAL

Pros

New Citi co-brand agreement launching in January 2026 expected to double loyalty remuneration to $10 billion by decade's end.
Labor peace secured through 2027-2028 across all major work groups, providing operational stability.
Comprehensive domestic network positioned for growth in key hubs like Chicago, Philadelphia, Miami, and Phoenix.

Considerations

Higher stock volatility at 18.57% compared to United's 19.75%, indicating greater price fluctuations.
Larger exposure to domestic flying, which faced headwinds in 2025 unlike international routes.
Negative book value of $6.00 per share reflects strained balance sheet position.

United Airlines

UAL

Pros

Recent Moody's credit rating upgrade to Ba1 signals strengthened balance sheet and financial health.
Durable demand trends and international normalisation support sustained revenue growth into 2026.
Higher price-to-sales ratio of 0.56 versus American's 0.17 indicates stronger market valuation perception.

Considerations

Slightly higher stock volatility at 19.75% compared to American's 18.57%, exposing investors to more price swings.
Viewed as more consensus long position among hedge funds, potentially limiting upside surprise.
Lower AI stock ranking relative to peers in some analyses, trailing in certain fundamental metrics.

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