U.S. airlines are off to a rough start in 2025 with many canceling flights due to a powerful winter storm. This canceled more than 1,300 flights on Monday, leaving many travelers stranded as snow, wind, and ice battered parts of the country.
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Southwest Airlines (LUV) was most affected by the winter storm with 264 flights canceled today. Next was American Airlines (AAL) with 176 cancellations. United Airlines (UAL) and Delta Air Lines (DAL) were also affected but didn’t suffer as many cancellations as their peers.
It wasn’t just cancellations that upset travelers in the U.S. today. Many also dealt with delayed flights due to the winter storm. More than 400 flights were delayed, setting back travel plans and forcing airlines to reschedule flights to avoid the worst of today’s weather.
How are Airlines Stocks Holding Up Today?
Airline stocks are performing admirably today, despite the winter storm causing chaos at the terminal. Southwest Airlines stock is up 1.55%, American Airlines shares are flying 4.3% higher, United Airlines stock is rising 3.44%, and Delta Air Lines stock is soaring 1.86% as of this writing.
Updated analyst coverage of American Airlines is likely behind Monday’s U.S. air travel stock rally. Shares of AAL got several upgrades, including Buy ratings, alongside increased price targets. It appears other airline stocks are riding AAL’s jetstream higher today.
Is AAL Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for American Airlines is Moderate Buy based on eight Buy, eight Hold, and one Sell ratings over the last three months. With that comes an average price target of $18.53, a high of $25, and a low of $12. This represents a potential 4.9% upside for AAL shares.
