American Airlines Group Inc. (NASDAQ:AAL) is one of the stocks most affected by inflation.

On March 12, 2026, Evercore ISI analyst Duane Pfennigwerth maintained an In-Line rating on American Airlines Group Inc. (NASDAQ:AAL) and cut his price target to $14 from $17 as rising fuel costs pressured the airline's outlook. Evercore said the latest dislocation in airline inputs was a “2.8-sigma event,” comparing it with periods such as 2008 and the early phase of the Ukraine war, while noting that spot jet fuel was running about 53% above the first-quarter-to-date average as of March 11.

Pixabay/Public Domain

That caution came as American was already dealing with a more expensive fuel backdrop. On January 27, the company said its first-quarter 2026 guidance reflected the impact of Winter Storm Fern, including a $150 million to $200 million revenue hit and a roughly 1.5-point increase in CASM-ex. Then on March 17, American lifted its first-quarter revenue outlook to more than 10% growth, but said fuel volatility had created an estimated $400 million expense hit and pushed expected results toward the lower end of its prior loss guidance.

American Airlines Group Inc. (NASDAQ:AAL) is a major network carrier operating domestic and international passenger and cargo service through the American Eagle regional brand and its mainline fleet.

While we acknowledge the potential of AAL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. Follow Insider Monkey on Google News.