Rothschild Downgrades American Airlines (AAL) to Neutral, Due To Higher Oil Prices

Group 1 - American Airlines Group Inc. (NASDAQ:AAL) has been downgraded by Rothschild & Co Redburn from Buy to Neutral, with a target price of $12.50, primarily due to the US-Iran war impacting fuel costs [1][3] - Goldman Sachs has raised its Q2 Brent crude oil price forecast by approximately 15% to $76 per barrel, warning that prolonged conflict could push prices to around $100 per barrel [2] - AAL's fuel expenses are projected to account for roughly 20% of its revenue in 2025, and a 15% increase in oil prices could reduce operating margins by 3 percentage points, while a 52% increase could reduce margins by 10 percentage points [3] Group 2 - American Airlines provides passenger and cargo air transportation services across the United States, Latin America, and other regions, and was formed through a merger in 2013 [4]