AAL vs LTM: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: AAL is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. AAL and LTM share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined AAL and LTM exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

American Airlines Group operates the world's largest airline by scheduled passengers and fleet size, flying a hub-and-spoke network centered on Dallas-Fort Worth, Charlotte, Miami, Phoenix, and other US gateways, plus international routes across the Atlantic, Latin America, and the Pacific. Its economics rest on three pillars: passenger ticket revenue, its high-margin AAdvantage loyalty and co-branded credit-card program (a major profit engine tied to its Citi and Barclays partnerships), and cargo. Like all legacy carriers, it carries heavy fixed costs for aircraft, fuel, and labor, which makes profitability sensitive to load factors, fares, and jet-fuel prices.

Full AAL guide

LATAM Airlines Group S.A. runs the largest airline network in South America, with passenger subsidiaries in Brazil, Chile, Colombia, Ecuador, Paraguay and Peru, a long-haul operation to North America, Europe and Oceania, and a cargo business that carried ~$510 million of revenue in the second quarter of 2026. The group transported ~21.1 million passengers in that quarter at an ~81.8% load factor, flew an operating fleet of ~383 aircraft, and guides to ~410 aircraft by the end of 2026 as A320neo, A321neo, Boeing 787-9 and Embraer E190-E2 deliveries arrive. Brazil is now its largest revenue market, ahead of Chile. Since 2022 LATAM has flown a trans-American joint venture with Delta Air Lines, having left the oneworld alliance in 2020, and reports in US dollars even though most ticket revenue is collected in Brazilian reais, Chilean pesos and other local currencies.

Full LTM guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• AAL drivers: Record revenue and premium mix; Loyalty and co-branded card economics.
• LTM drivers: Capacity growth funded by a renewed fleet; Premium cabin and cargo carry the revenue mix.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: American carries one of the most leveraged balance sheets among US airlines, with an adjusted net-debt-to-capital ratio management has cited near 119%, well above peers like Delta and United. For LTM, fuel is the dominant variable: a Middle East supply disruption nearly doubled LATAM's fuel-related costs year over year in the second quarter of 2026 and cut operating margin from ~12.9% to ~5.4%, and the group carries no permanent hedge that removes that exposure.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick AAL if you believe its drivers more; LTM if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the AAL and LTM guides.

AAL. American trades at a low market cap relative to its revenue, which is typical for airlines because heavy debt sits ahead of shareholders in the capital structure. The 2026 guidance range spanning a loss to a modest profit reflects how much depends on fuel prices and demand. The stock traded around $18 in early July 2026, off its 2026 highs, with analyst price targets clustered in a wide band.

LTM. All figures are in US dollars, which is how LATAM reports, even though the majority of ticket sales are collected in local South American currencies. The trailing multiples blend a near-record first quarter (~19.8% adjusted operating margin) with a fuel-crushed second quarter (~5.4%), so a trailing P/E near ~9.6x is describing two very different operating environments averaged together. Trailing dividends of ~$0.96 per ADS, an interim in December 2025 plus a final in May 2026, work out to roughly a ~1.8% yield at the recent price.

Headline figures (approximate, JULY 2026): AAL shows revenue (ttm) ~$55B, q1 2026 revenue ~$13.9B (record, +11% YoY), total debt ~$34.7B (below $35B, lowest since 2015), liquidity ~$10.8B; LTM shows revenue (ttm) ~$15.9B; FY2026 guidance ~$17.3B to ~$17.7B, net income (ttm) ~$1.56B, about ~$5.45 per ADS, q2 2026 revenue and margin ~$4.18B (+27.6% YoY), ~5.4% adjusted operating margin, adjusted ebitda ~$713M in Q2 2026 (~17.0% margin); FY2026 guided ~$4.1B to ~$4.4B.

AAL and LTM are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined AAL and LTM exposure against your real portfolio. It is not an investment adviser.