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    Should Alleged Bias and Misrepresentation in Cadet Academy Require Action From American Airlines (AAL) Investors?

    Simply Wall St·12/25/2025 12:27:14
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    • In December 2025, a group of eighteen student pilots filed a complaint against American Airlines, its Cadet Academy partner Coast Flight Training, and American Airlines Federal Credit Union, alleging false promises about training timelines, costs, and career outcomes, and seeking US$36.00 million in damages.
    • The lawsuit also accuses American Airlines and its partners of systemic racial discrimination and “reverse redlining” in the Cadet Academy, raising fresh questions about the airline’s diversity efforts, risk controls, and exposure to complex civil rights and consumer protection claims.
    • Next, we’ll examine how these discrimination and misrepresentation allegations around the Cadet Academy could affect American Airlines’ investment narrative.

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    American Airlines Group Investment Narrative Recap

    To own American Airlines Group, you need to believe its large network, improving earnings, and loyalty economics can outweigh high debt, thin margins, and cyclical demand. The Cadet Academy lawsuit and the recent disability penalty highlight added legal and reputational overhangs, but do not obviously displace leverage and domestic demand as the central near term drivers of the story.

    The Department of Transportation’s amended penalty for mishandling mobility devices is especially relevant here, because it underlines how customer treatment, compliance, and operational execution can directly influence American’s cost base, regulatory scrutiny, and, ultimately, its ability to convert any traffic recovery into durable profitability.

    Yet investors also need to weigh how these civil rights and consumer protection claims could reshape perceptions of American’s brand and long term risk profile...

    Read the full narrative on American Airlines Group (it's free!)

    American Airlines Group's narrative projects $61.8 billion revenue and $1.8 billion earnings by 2028. This requires 4.5% yearly revenue growth and about a $1.2 billion earnings increase from $567.0 million today.

    Uncover how American Airlines Group's forecasts yield a $15.35 fair value, in line with its current price.

    Exploring Other Perspectives

    AAL 1-Year Stock Price Chart
    AAL 1-Year Stock Price Chart

    Ten members of the Simply Wall St Community currently value American Airlines between US$10.61 and US$29.85 per share, showing how far apart individual views can be. When you set those against concerns about American’s sizeable US$29 billion net debt and ongoing fleet CapEx, it becomes clear why exploring multiple perspectives on its financial resilience matters.

    Explore 10 other fair value estimates on American Airlines Group - why the stock might be worth as much as 90% more than the current price!

    Build Your Own American Airlines Group Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.