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The Hot Stock: American Airlines Soars 5.4%
American Airlines was the best-performing stock in the S&P 500 today because stocks don't fall forever.
By
Ben Levisohn
Aug. 25, 2017 4:57 p.m. ET
American Airlines Group(AAL) soared to the top of theS&P 500today as the airline sectorbounced back from a rout earlier this week.

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ILLUSTRATION:GETTY IMAGES
American Airlines Group gained 5.4% to $45.25 at 4:30 p.m. today, while the S&P 500 advanced 0.2% to 2,443.05.

While there was no news on the airlines today, the sector has been beaten up in August followingconcerns of a price warbetweenUnited Continental(UAL) andSpirit Airlines(SAVE). Even following today's gain, American Airlines has tumbled 10% in August, while United Continental has dropped 6.4%,Delta Air Lines(DAL) has fallen 5.4%,Southwest Airlines(LUV) has declined 5.1%, and Spirit Airlines has slumped 7.9%

American Airlines Group's market capitalization rose to $22 billion today from $20.9 billion yesterday. It reported net income of $2.7 billion on sales of $40.2 billion in 2016.

http://www.barrons.com/articles/the-hot-stock-american-airlines-soars-5-4-1503694657
 
LUV looks like only one of the bunch worth watching, took out Mar lows and closed above but the others look like dead cat bounce. Wait till it hits trendline then sell them with tight stops. Low fuel costs and they doing 6.7% income? Is this like the standard?
 
RyanAir (RYAAY) has em all beat.
5% dividend too.
They have 300 aircraft (737-800's) in operation.... and 183 737-800's on order with an option for another 100 Boeing 737 MAX 200's.
Growing like all get out.
Ramp space and take-off slots in Dublin is their biggest problem now.

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The stock has been growing steadily.
However, their ROE has been decreasing, indicating they are relying on debt heavily, and their capital structure (debt to equity) also tells that. But it's normal in airline industry.


Since they are paying dividend, imho, it's a good stock for regular income.
Airline industry doesn't grow much and rather is stable industry and operates on very small margin. AAL's PE ratio has been very flat around 11 for a long time and their profit margin is just roughly 2~7%

CEO Doug Parker has done a good job at the company but that's because he was to receive stock award based on his performance and he sold at very good price after receiving the award in the beginning of this year.

Recent interest from Qatar airway in buying their share is threat to the firm and Doug Parker isn't very excited about that interest as it threats his position too.

Personally I am not particularly a big fan of investment from Qatar. Look at soccer now, they are doing really bad things to that sport.
 
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American Airlines Lawsuit

A South Carolina woman suffered an embolism on an American Airlines flight a couple years back and subsequently died. Now, Brittany Oswell's family is suing the carrier for wrongful death, claiming the flight crew didn't try to make an emergency landing when she became dizzy and disorientated, and that their onboard medical equipment was faulty. ABC News
 
I think the United Continental CEO, Oscar Munoz, will make a different.

UAL is being aided by the robust growth in passenger revenues due to strong demand for air travel. Additionally, its projection on unit revenues for the first quarter of 2018 is encouraging. Passenger unit revenues are expected to increase between 1% and 3% in the current quarter.
 
American Airlines cuts

American Airlines will lay off around 30% of its management and admin staff. Although the carrier says it is starting to see demand pick up again, it sees a few lean years ahead before the industry recovers. "We must plan for operating a smaller airline for the foreseeable future," American's People VP Elise Eberwein wrote to employees. Wall Street Journal
 
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