American Airlines stock
American Airlines (AAL) stock has fallen since mid-July due to several challenges facing the airline industry. These issues include several major hurricanes that damaged critical oil facilities and infrastructure, the subsequent rise in fuel prices, and lowered guidance.
AAL’s decline stopped when its stock rose 6% on October 3, 2017, following an interview with American Airlines’ CEO, Doug Parker, in the Dallas Business Journal. Parker appeared bullish on the company’s future and on the airline industry in general.
“I don’t think we’re ever going to lose money again,” Parker noted. “We have an industry that’s going to be profitable in good and bad times.” He added that AAL should be able to earn a profit of $3 billion before taxes even in a down year.
AAL stock gained another 5% on October 10, 2017, after the company increased its unit revenue and margin guidance.
American Airlines (AAL) is expected to announce its 3Q17 earnings on October 26, 2017. In this series, we’ll discuss analyst estimates for American Airlines’ 3Q17 and fiscal 2017 results. We’ll also look at the strength of the airline’s balance sheet. We’ll also help you understand the airline’s valuation multiples and what’s driving them.
Investors can gain exposure to American Airlines by investing in the First Trust NASDAQ-100 Ex-Technology Sector Index ETF (QQXT), which invests 1.7% of its portfolio in AAL.
We will be covering earnings analysis for other airlines including United Continental (UAL), Southwest Airlines (LUV), and Alaska Air Group (ALK) in future series. UAL reported its earnings on October 19, ALK is expected to report its earnings on October 25, and LUV is expected to report its earnings on October 26.
To check JetBlue’s (JBLU) earnings estimates, please read JetBlue Trading at Industry Low Valuations before 3Q17 Earnings.