This airline stock could soar despite higher fuel costs, Rothschild says

American Airlines (AAL) stock rose 6.8% after crude oil prices dropped 3% due to geopolitical remarks. Fuel costs significantly impact airlines' operating expenses. AAL reported Q3 revenue of $16.3B, up 19.3%, but fuel expenses rose 67.5% to $4.6B, resulting in a GAAP loss of $269M. The company expects a Q4 adjusted loss of 50 cents to $1.10 per share.

JetBlue (JBLU) stock rose 7% to $3.92, extending a week-long rally. Deutsche Bank upgraded JetBlue to Buy, citing favorable seat supply and fare strength. Q3 revenue rose 21.1% YoY to $2.81B, but losses widened. United (UAL) and American (AAL) airlines also gained 7% and 6% respectively. JetBlue's focus on leisure travel and Northeast routes differentiates it from larger carriers.

American Airlines (AAL) stock rose 4.5% in pre-market trading to $13.77, driven by falling crude oil prices and a scheduled investor meeting. The company reported Q3 2026 revenue of $16.34 billion, beating estimates, with an adjusted loss of $0.28 per share. Analysts have a mixed outlook, with a consensus 'Hold' rating and an average price target of $17.28.

Seven US airlines, including American (AAL), Delta (DAL), Southwest (LUV), and United (UAL), face lawsuits alleging they colluded to raise fares by sharing pricing data via ATPCO's tools. The suits claim this violates antitrust laws and artificially inflates ticket prices. ATPCO and its subsidiary 3Victors are also named. American Airlines denies the claims. Airfares have risen 22% year-on-year, partly due to fuel costs.

Five major US airlines (American Airlines, Delta, Southwest, Alaska Air, JetBlue) and ATPCO face a federal lawsuit alleging they used a shared fare system to monitor and coordinate ticket prices, violating antitrust laws. The complaint claims this practice artificially inflated air travel costs. ATPCO, an airline-owned fare database, is central to the case. The lawsuit echoes a 1992 DOJ case that resulted in consent decrees, raising questions about the effectiveness of those measures.

American Airlines plans to purchase up to 20 supersonic jets from Boom Supersonic, aiming to reduce flight times by half. The airline has agreed to buy 20 Overture jets, with an option for 40 more, pending regulatory approval. This follows a similar deal by United Airlines. The move could enhance travel efficiency but depends on certification and production timelines.