American Airlines Loses Streak Reaches Seven Sessions

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American Airlines ($NASDAQ:AAL) has been experiencing a downturn over the past seven sessions, with its stock price declining for each of these days. This has been a worrying trend for investors in the airline industry, as American Airlines is one of the largest companies in the sector. Since its inception, American Airlines has grown to be the world’s largest airline by fleet size and revenues. It has also earned numerous awards and accolades, such as being recognized as the most on-time airline by Flightstats for eight consecutive years.

However, it appears that the company’s recent losses have been too much to overcome. American Airlines has been struggling to remain competitive in the current market climate. It faces stiff competition from other major airlines such as United Airlines, Delta Air Lines, and Southwest Airlines, as well as from budget carriers such as JetBlue and Spirit Airlines.

Additionally, the rise of low-cost airlines has made it harder for American Airlines to remain profitable. The news of American Airlines’ seven consecutive days of losses has been met with some trepidation in the market. Investors are hoping that the company can turn its fortunes around in the near future and start to see profits again. Until then, it looks like American Airlines will continue to struggle in this difficult economic climate.

Price History

American Airlines has been on a losing streak for seven consecutive trading sessions, and Wednesday was no different. The stock opened at $13.2 and closed at $13.0, a 3.6% decline from its prior closing price of $13.4. Investors were seemingly disappointed with the lack of progress made by the company, driving the stock price lower. This downward spiral has brought the stock to its lowest level since March. Over the past few months, travel restrictions, reduced consumer demand, and cancellations of flights have all taken a toll on the company’s bottom line.

Such a streak has caused further concern among investors as to whether the company will be able to recover and reverse its fortunes. With no clear end in sight to the current crisis, investors may remain cautious in the near-term and turn to other investments. Despite the current downturn, American Airlines still remains committed to providing customers with safe and reliable service throughout this difficult period. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for American Airlines. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for American Airlines. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for American Airlines. More…

Key Ratios Snapshot

Some of the financial key ratios for American Airlines are shown below. More…

Analysis

At GoodWhale, we have conducted an analysis of the fundamentals of AMERICAN AIRLINES. According to our Star Chart, the company has an intermediate health score of 4/10 in terms of its cashflows and debt – indicating that AMERICAN AIRLINES might be able to pay off debt and fund future operations. Moreover, we classify AMERICAN AIRLINES as a ‘cheetah’ – a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. Thus, investors looking for fast growth but who are comfortable with taking on more risk may be interested in this type of company. Finally, AMERICAN AIRLINES is strong in terms of its assets, medium in terms of growth, profitability and weak in terms of dividend. As such, investors looking for solid returns with moderate risk may be attracted to the company. 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 is currently experiencing a downward trend in its stock price, having lost ground for seven consecutive sessions. This has been characterized by investors as a bearish indicator, suggesting that the stock is likely to remain in a slump in the short-term. Experts suggest that investors remain cautious and keep an eye on developments in the company, such as quarterly earnings and any news of cost-cutting initiatives or other strategic movements. In addition, it is worth keeping an eye on developments in the airline industry and any potential catalysts that could help American Airlines to turn its fortunes around.