Why Did American Airlines Stock Drop Sharply After Delta's Mixed Outlook?

Shares of American Airlines Group (AAL) closed down 4.06% on Tuesday, January 13, 2026. The American Airlines stock price closed at $15.35 per share. Trading volume was high, reaching 82.2 million shares. This volume was 47% above the three-month average of 56 million shares. The decline was driven by several factors. These included a mixed earnings report from a peer, sector-wide weakness, and fresh concerns over a potential credit card interest rate cap.

Market Movement and Peer Performance

The broader market saw modest declines today. The S&P 500 index slipped 0.20%. The Nasdaq Composite index eased 0.10% on the day. Within the airline industry market, American Airlines traded down in sympathy with its peers. Delta Air Lines fell 2.38% after reporting a mixed quarter. United Airlines also dropped 0.76% as traders weighed the industry news.

The Delta Effect on AAL Stock Price

Delta Air Lines reported mixed earnings, causing its own stock to decline. However, the report also contained a key concern for American Airlines. Delta CEO Ed Bastian highlighted his company's advantage. This advantage is having a co-branded credit card partnership with American Express. Bastian noted that Delta's cardholders are generally more affluent. This affluent customer base may better position Delta to handle new regulatory challenges. This commentary contributed to the drop in AAL stock price.

Loyalty Program Economics Under Pressure

The primary concern for the entire passenger and cargo carrier sector is a proposed 10% cap on credit card interest rates. Loyalty programs are a critical financial engine for major U.S. airlines. They often generate more consistent profits than selling seats. Co-branded credit card partnerships are the cornerstone of airline loyalty program economics. These partnerships generate a significant portion of the program's revenue.

Banks purchase miles in bulk from the airlines. They then offer these miles as rewards for customer spending. This is a highly lucrative business for the airlines.

The Threat of a Rate Cap

Experts suggest a 10% rate cap would cause a chaotic contraction of the rewards ecosystem. Banks would likely cut rewards, increase fees, and restrict lending. This would especially affect customers with lower credit scores.

• Risk: A rate cap reduces the interest revenue banks use to fund generous rewards programs.
• Impact: Issuers would focus on premium, low-risk customers to preserve profitability.
• AAL's Position: American Airlines' AAdvantage program is partnered with Citi, which is set to become the exclusive issuer in 2026. The market is weighing whether American's customer base is as resilient as Delta's more affluent segment against this regulatory threat.

Broader Industry Headwinds

Beyond the credit card interest rate cap concern, Delta's guidance fell short of Wall Street's expectations. This created negative sentiment across the sector. Making matters worse, a recent Consumer Price Index (CPI) reading showed airfares declined 3% in December. This decline signals potential weakness in pricing power for airlines. The combination of the Delta Air Lines outlook, regulatory uncertainty, and declining airfares created a web of negative news. Investors are now seeking more commercial aviation news and clarity on the industry's financial future. This confluence of factors sent the American Airlines stock lower today.