Stock Market Today, Jan. 27: American Airlines Drops on Q4 Miss and Storm Impact

American Airlines Group (NASDAQ:AAL), a provider of air transportation services for passengers and cargo, closed at $13.55, down 7.00%. Shares fell after fourth-quarter results missed profit expectations and management detailed shutdown and storm-related pressures. Investors are watching 2026 guidance for stronger earnings and revenue growth. Trading volume reached 100.9 million shares, about 82% above its three-month average of 55.5 million shares. American Airlines Group IPO'd in 2005 and has fallen 30% since going public.

How the markets moved today

S&P 500 added 0.41% to finish Tuesday at 6,979, while the Nasdaq Composite gained 0.91% to close at 23,817. Among airlines, Delta Air Lines closed at $66.14, down 2.01%, and United Airlines finished at $104.04, down 3.45%, as investors compared recent earnings and outlooks across the sector.

What this means for investors

American Airlines reported Q4 earnings that missed analysts’ expectations on both the top and bottom line. Management estimated that the U.S. government shutdown caused a $325 million hit in Q4, which contributed to the light figures. Similarly, the company believes winter storm Fern will have a roughly $175 million impact on Q1’s results, which also weighed on American Airlines’ guidance, prompting today’s downward move.

While the company plans to generate $2 billion in free cash flow in 2026 — and paid down over $2 billion of its $30-plus billion in long-term debt — the uncontrollable events it faced in the last quarter (and will continue to face) are enough to keep me away from airline stocks.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.