American Airlines Group Stock Soars Despite Day’s Losses
December 28, 2023
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Despite losses on the day, American Airlines ($NASDAQ:AAL) Group Inc. stock managed to outshine its rivals. American Airlines Group Inc. is a major airline holding company based in Fort Worth, Texas that operates nine major airlines around the world. The company’s stock has soared over the past year as it continues to benefit from increased demand for air travel and strong cost control measures. The stock has been supported by strong customer demand for air travel and cost reductions related to fuel prices and labor costs. American Airlines Group Inc. has also benefitted from its successful rewards program, which has helped to attract more passengers.
The company has also been able to capitalize on the growing trend of travelers opting for nonstop flights over connecting flights, and its network of hubs across the US allows it to leverage on this trend. American Airlines Group Inc. is also implementing new technologies to improve customer service and operational efficiency, further driving its success. Despite the losses seen on the day, American Airlines Group Inc. has managed to impress with its performance over the past year, and the stock continues to trade near its all-time highs. With strong customer demand, cost reductions, and innovative strategies in place, it appears that American Airlines Group Inc. stock will continue to outperform its peers.
Price History
The stock opened at $14.2 and despite closing the day at $14.1, AAL saw a surge of 3% in its share price. This was most likely due to the news that the airline will be restarting some of its international flights in July, as well as its proposed summer schedule. The stock closed at $14.1, slightly lower than the previous day’s closing price of 14.3, but still up by 3% from its opening price. This sudden surge in the stock price demonstrates that investors are optimistic about the prospects of American Airlines in the coming months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for American Airlines. More…
| Total Revenues | Net Income | Net Margin |
| 52.91k | 1.61k | 4.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for American Airlines. More…
| Operations | Investing | Financing |
| 5k | -1.11k | -3.68k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for American Airlines. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 65.71k | 70.85k | -7.86 |
Key Ratios Snapshot
Some of the financial key ratios for American Airlines are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 29.0% | -21.3% | 8.0% |
| FCF Margin | ROE | ROA |
| 4.2% | -55.9% | 4.0% |
Analysis
As GoodWhale, we performed an in-depth analysis of the wellbeing of AMERICAN AIRLINES. Our Star Chart shows that the company is strong in assets, medium in growth, profitability and weak in dividends. We classified them as a ‘cheetah’ – a type of company that has achieved a high revenue or earnings growth but is considered less stable due to lower profitability. Given its profile, we believe investors who are willing to tolerate higher risk and volatility may be interested in such a company. AMERICAN AIRLINES has an intermediate health score of 4/10 with regard to its cashflows and debt, which suggests that the company is likely to sustain future operations in times of crisis. More…
Peers
The airline industry in the United States is highly competitive, with American Airlines Group Inc competing against Delta Air Lines Inc, JetBlue Airways Corp, and Southwest Airlines Co. All four companies offer a variety of services and amenities to their customers, and all are striving to be the best in the industry. American Airlines Group Inc has a long history in the airline industry, dating back to 1930. The company has a fleet of over 950 aircraft and serves over 350 destinations in more than 50 countries. Delta Air Lines Inc is the second-largest airline in the world, with a fleet of over 800 aircraft and serving 325 destinations in 52 countries. JetBlue Airways Corp is a relative newcomer to the industry, having been founded in 1999, but has quickly become a major player, with a fleet of over 250 aircraft and serving 102 destinations in 28 countries. Southwest Airlines Co is the largest low-cost carrier in the United States, with a fleet of over 700 aircraft and serving 101 destinations in 40 countries.
– Delta Air Lines Inc ($NYSE:DAL)
Delta Air Lines Inc is an American airline headquartered in Atlanta, Georgia. The company operates a mainline fleet of over 800 aircraft and its regional affiliates operate over 1,000 regional aircraft. The company has a market cap of 20.63B as of 2022 and a Return on Equity of 21.65%. Delta Air Lines is one of the four major airlines in the United States and is a founding member of the SkyTeam global airline alliance. The company’s main hub is at Hartsfield-Jackson Atlanta International Airport, and it also has hubs in Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Salt Lake City, and Seattle. The company flies to over 325 destinations in 52 countries on six continents.
– JetBlue Airways Corp ($NASDAQ:JBLU)
JetBlue Airways Corp is an American low-cost airline headquartered in New York City. The company was founded in 1998 and it operates flights to destinations in the United States, the Caribbean, and Latin America. As of 2022, JetBlue Airways Corp has a market cap of 2.22B and a Return on Equity of -6.48%. The company has been struggling financially in recent years, posting losses in three of the past five years.
– Southwest Airlines Co ($NYSE:LUV)
Southwest Airlines Co is a U.S. airline headquartered in Dallas, Texas. As of 2022, it has a market cap of 19.65B and a return on equity of 10.01%. The company operates more than 4,000 flights a day and serves 99 destinations in the United States and 10 other countries. Southwest is known for its low fares and its “no frills” approach to flying.
Summary
American Airlines Group Inc. (AAL) stock closed down on the day, yet outperformed its competitors in the airline sector. The stock was able to withstand losses despite losses in other travel related stocks. Analysts attribute the stock’s performance to its strong balance sheet and cost cutting measures that have helped it stay profitable, despite the pandemic induced recession.
With additional stimulus and a continued recovery expected in the near future, AAL is positioned to maintain its current momentum in the long run. Investors should keep an eye on the company’s cash flows and operations as they look for signs of a sustained recovery.
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