American Airlines' stock plummeted 5.03% during intraday trading on Wednesday, as the airline faced both immediate operational disruptions and ongoing internal challenges.

The drop followed news that the U.S. Federal Aviation Administration had imposed emergency flight restrictions at Texas's El Paso International Airport, citing special security reasons. The action, which was later lifted, stranded numerous American Airlines aircraft at the airport. A U.S. official indicated the closure was related to Mexican cartel drones breaching U.S. airspace, prompting Pentagon intervention.

Simultaneously, American Airlines is grappling with significant internal turmoil. The airline's flight attendants union recently issued a unanimous vote of no confidence in CEO Robert Isom, following similar concerns from the pilots union. The company has faced operational missteps, including high cancellation rates and poor on-time performance compared to rivals, exacerbating investor concerns amid the immediate travel disruption.