David Tepper’s Appaloosa Management has taken a significantly larger position in American Airlines Group (AAL), adding 9.25 million shares during the third quarter, according to the firm’s latest 13F filing with the US Securities and Exchange Commission.
The increased exposure follows a challenging period for the carrier. As of 18 November, American Airlines’ shares were down more than 28% year-to-date, despite signs of operational improvement and stronger-than-expected guidance.
The airline forecast a return to profitability in the fourth quarter, guiding to adjusted EPS of $0.45 to $0.75, well ahead of the $0.33 estimate. Management highlighted ongoing strength in both corporate and leisure demand, with premium cabin revenue continuing to outperform the main cabin.
As the world’s largest airline by fleet size, capacity and revenue passenger miles, American remains a key operator in the US–Latin America corridor, a market that accounts for over 30% of US airline revenue.
