According to the financial news app, TD Cowen, downgraded American Airlines (AAL.US) from 'buy' to 'hold' and lowered the target price from $16 to $10.

Analyst Thomas Fitzgerald said that recent heavy discounts by airlines such as American Airlines are expected to impact revenue. 'Our survey shows that the airline has been actively discounting this summer as fuel prices fall. American Airlines' network makes it more susceptible to the effects of the current oversupply market, and it cannot offset the higher cost environment,' he warned.

Fitzgerald pointed out that the company also needs to finalize a new flight attendant contract and hire a new chief commercial officer. 'These factors may push down the likelihood of generating free cash flow in the mid-term, as well as the opportunity for shareholder returns.'

According to data compiled by the US Transportation Statistics Bureau, airfare prices fell by 5.0% month-on-month in May, continuing the 3.6% decline in April and declining for four consecutive months. Looking ahead, Hopper's summer forecast for August shows that US domestic summer airfare prices will fall by about 6% year-on-year, to $315 per ticket, marking the first summer airfare price decline since 2020. Earlier this month, Delta Airlines pointed out that airfare prices for the entire industry are falling.