Is AAL (American Airlines Group Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, AAL is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 2 of 4 compliance screens. Its debt-to-market-cap ratio of 408.97% exceeds the ≤33% threshold. Its cash & securities ratio of 74.71% exceeds the ≤33% threshold.

American Airlines Group Inc. is one of the world 's largest network air carriers, operating a massive fleet of over 865 mainline aircraft. Through key hubs in cities like Dallas/Fort Worth, Charlotte, and Miami, the company provides scheduled air transportation for millions of passengers annually, alongside a significant cargo operation. It connects travelers globally through partner gateways in London and Tokyo, making it a critical player in international logistics and travel. For Muslim investors, however, American Airlines is currently classified as Not Halal (Haram). Although the core business of flying people and goods is permissible (Halal), the company fails two critical financial ratios under AAOIFI standards. Specifically, it failed the debt-to-market cap screen and the liquidity screen, meaning the company's financial structure relies too heavily on interest-bearing debt and liquid assets relative to its market value. From a financial perspective, the primary concern is the staggering debt-to-market cap ratio of 409.0%, which is over twelve times the permissible limit of 33%. This high leverage is common in the capital-intensive airline industry, where companies borrow heavily to finance aircraft, but it makes the stock non-compliant for Shariah-conscious portfolios. Additionally, the cash and interest-bearing securities ratio sits at 74.7%, further confirming its non-compliant status. Investors looking for exposure to the travel sector should look elsewhere or monitor AAL for significant deleveraging in the future. Until the company drastically reduces its debt load or increases its market capitalization to rebalance these ratios, it remains ineligible for Islamic investment portfolios . American Airlines Group Inc. operates in the Industrials sector under the Airlines, Airports & Air Services industry and is headquartered in Fort Worth, TX, US. The company is led by CEO Robert D. Isom Jr. and employs approximately 133,100 people.

AAL was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. AAL passed 2 of these 4 screens.

AAL was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.