Welcome to InvestorPlace’s American Airlines (NASDAQ:AAL) live blog, where you can find up-to-the-second insights in AAL stock news today.
[Check back often, as this page will be updated with more AAL stock news and insights each day the market is open.]
What Does the Future Hold for AAL and Its Peers?
[Thursday, April 23, 4:57 p.m.]
- AAL stock closed lower by 0.19% on Thursday.
- Bloomberg reported Monday that Dubai-based Emirates is imagining what its flights will look like as the airline begins to reopen. The plan includes removing middle seats, scrapping magazines and having plane personnel don personal protective equipment.
- Morning Brew’s latest daily update included that report, and a bit more analysis. The writers posed the question — Onwards and Upwards? Perhaps reimagined flights are a good sign for struggling airlines. Investors should watch for a similar plan from American Airlines as the U.S. moves toward broader reopening.
American Airlines Stock Is Likely to Grind Lower
[Thursday, April 23, 3:34 p.m.]
- AAL stock is up 0.6% in intraday trading.
- InvestorPlace’s Faisal Humayun argues that airlines will face extreme hardship for at least the next six quarters. With that in mind, he thinks AAL stock is likely to grind lower, not head back up.
- So what should investors do? Humayun argues it’s best to stay on the sidelines now. He sees credit downgrades in the near future, and those are likely to hurt the share price.
New York Post: American Airlines Boards a Packed Flight
[Thursday, April 23, 3:01 p.m.]
- AAL stock is up 0.9% in intraday trading.
- The New York Post reported Thursday that American Airlines boarded and flew a packed flight from Miami to New York’s LaGuardia airport on Wednesday. One woman shared her concerns on social media that half of the flight’s 150 passengers weren’t wearing masks.
- In response, American Airlines said it is “running a business.” It also said gate agents will work to reassign seats in order to allow more space between passengers.
- The Centers for Disease Control and Prevention does not mandate passengers wear a mask while on planes.
Young Investors Are Chasing AAL Stock
[Thursday, April 23, 1:45 p.m.]
- AAL stock is up 2.3% in intraday trading.
- InvestorPlace’s Luke Lango took a look Thursday at companies young investors were hot on in March. His data comes from Robinhood, the popular online trading platform. According to the CEO, American Airlines made a short list of stocks these young investors couldn’t get enough of.
- Why? Lango argues that young investors likely believe air travel demand will rebound sharply once the pandemic eases. Plus, the government stepped in to bail out the airlines, clearing any risk of insolvency for AAL and its peers.
American Airlines Faces New Class-Action Lawsuit
[Thursday, April 23, 10:00 a.m.]
American Airlines Falls on Bad News from Peers
[Wednesday, April 22, 4:40 p.m.]
- AAL shares closed down 6.6% on Wednesday.
- InvestorPlace’s Bret Kenwell writes that American Airlines’ downward action can be blamed on peers Delta Air Lines (NYSE:DAL) and United Airlines (NASDAQ:UAL).
- Delta reported earnings Wednesday, and investors didn’t like what they saw. The company says it is burning through $100 million in cash each day. United Airlines slipped 7% on news it was pricing a secondary offering of $1 billion to help its own cash burn problems.
AAL Launches Marketing Campaign Amid Controversy
[Wednesday, April 22, 2:20 p.m.]
- AAL shares are down 7.2% in intraday trading.
- Earlier this week, Kiera Feldman wrote for the Los Angeles Times that social commentators are asking why planes are still flying, particularly as those employed by airlines are dying from Covid-19. Among the recent deaths she lists is an unnamed American Airlines gate agent.
- Whether in direct or indirect response, American Airlines released a new short film titled “You Are Why We Fly.” In it, employees emphasize that it is critical for planes to fly to get people home and deliver “life-saving equipment.” According to The Drum, the largest marketing website in Europe, this is the first time in four years American Airlines has relied on such brand-driven marketing.
AAL Stock Is Still Very Risky
[Wednesday, April 22, 1:10 p.m.]
- AAL shares are down 6.3% in intraday trading.
- InvestorPlace’s Wayne Duggan can’t deny that AAL stock looks “crazy cheap” here. But he also isn’t denying that it’s extremely risky, especially as the major carriers are likely to face long-lasting volatility. Right now, he thinks American and its peers will recover, but he’s not buying.
- Instead, Duggan is looking at United Airlines (NASDAQ:UAL), which has a larger market capitalization and less debt.
American Airlines Sends $460,000 to UNICEF
[Wednesday, April 22, 12:20 p.m.]
- American Airlines is sending $460,000 to UNICEF’s relief work in Argentina, Brazil, Costa Rica and Guatemala. The money will fund water, sanitation and hygiene items including personal protective equipment.
- According to a press release from the company, American Airlines has been participating in UNICEF’s Change for Good program since 1994. Flight attendants collect money from passengers on international trips. The company collected $1.2 million for the program in 2019.
Investors Should Focus on Southwest, Not American
[Wednesday, April 22, 11:25 a.m.]
- AAL stock is down 6.4% as of this writing.
- InvestorPlace’s Ian Bezek isn’t bullish on AAL stock, even after the federal bailout. He writes that it was already a weaker name in the carrier space, and he doesn’t trust it to stay afloat. For investors, he says it’s “needlessly speculative.”
- One stock in the airline space he does like is Southwest Airlines (NYSE:LUV). He writes Southwest has a solid balance sheet and looks to be the most secure airline right now.
American Airlines Raises Checked Bag Fees
[Wednesday, April 22, 10:45 a.m.]
- As of April 21, American Airlines is raising checked bag fees for trans-Atlantic flights. For all new flights, the first checked bag will increase from $60 to $75.
- One Mile at a Time reports that American Airlines is not raising checked bag fees yet for domestic flights, although JetBlue (NASDAQ:JBLU) and United Airlines (NASDAQ:UAL) have moved to do so.
- These increased fees come as travel demand is at rock-bottom levels, and airlines are cutting capacity left and right. AAL stock is down 63% year-to-date.
Don’t Buy AAL Stock Just Yet
[Wednesday, April 22, 9:50 a.m.]
- AAL shares opened at $11.09 today.
- InvestorPlace’s Thomas Niel writes that many investors see AAL stock as a bottom-fishing opportunity, or even as a legitimate stock to buy now. Niel isn’t so sure, though. He’s worried about how long it will take airlines to recover, and how long it will take for demand to return to normal.
- What’s his takeaway? Stay away for now, and take a wait-and-see approach. He’s particularly keen on shares between $5 and $10.