AAL - American Airlines Group Inc.
| Previous close | 30.59 |
| Open | 30.58 |
| Bid | 30.55 x 2200 |
| Ask | 30.56 x 1800 |
| Day's range | 30.33 - 30.67 |
| 52-week range | 24.23 - 40.58 |
| Volume | 1,090,209 |
| Avg. volume | 7,678,887 |
| Market cap | 13.371B |
| Beta (3Y monthly) | 1.69 |
| PE ratio (TTM) | 8.64 |
| EPS (TTM) | 3.53 |
| Earnings date | 22 Jan 2020 - 27 Jan 2020 |
| Forward dividend & yield | 0.40 (1.31%) |
| Ex-dividend date | 2019-11-05 |
| 1y target est | 36.78 |
- Bloomberg
Boeing Max Return Has More Layers Than an Onion
(Bloomberg Opinion) -- Boeing Co.’s 737 Max may be inching toward a return, but the crisis is far from over.The airplane maker said Monday that it continues to aim for Federal Aviation Administration certification of updates to the troubled Max in the current quarter, which could allow it to start delivering the jets in December. It could take several more weeks to finalize pilot-training requirements, which would mean airlines wouldn’t technically be allowed to fly the planes until January at the earliest. And then airlines would need more time on top of that to bring planes out of storage and implement said training. Southwest Airlines Co. and American Airlines Group Inc. said last week that they weren’t planning to fly the Max as part of their fleets until early March, nearly a full year after the second of two fatal crashes prompted a worldwide grounding of the plane.This is a shift from Boeing’s forecast of a fourth-quarter return for the Max. While Boeing CEO Dennis Muilenburg had warned the Max’s return may be “phased” in across geographical jurisdictions amid greater scrutiny from the European Union, it now appears that the FAA’s approval process will have multiple steps as well. In hindsight, there was a subtle wording shift in Boeing's third-quarter earnings materials to "regulatory approval for the Max return to service" in the fourth quarter, versus its language in July, which mentioned an unqualified "return to service."Still, investors viewed the news of December deliveries as a positive, and it has a clear appeal for Boeing. The debate over pilot-training requirements has the potential to get contentious with families of the victims of the two Max crashes and Canada Transport Minister Marc Garneau among those who have advocated for much more rigorous (and expensive) simulator training. And Boeing doesn’t have a lot of time to wait. The Wall Street Journal reported over the weekend that it has two months’ worth of parking space left before it will have to explore other storage options for a glut of undeliverable Max jets. In the worst-case scenario, continuing delays to the Max’s return could force it to reduce or halt production.Why the FAA would be willing to throw Boeing a bone like this is less clear. I will note that in the company’s news release updating investors on the timeline for the Max, Boeing says it’s “possible” the FAA will allow it to start delivering jets in December. Still, this is the most detailed plan yet for the Max’s return to commercial flight and can be taken as a sign that Boeing feels confident there won’t be further snags as it enters the final stages of winning the FAA’s approval for its fixes. That will be a relief after reports last week that regulators found Boeing’s documentation for a proposed software fix lacking and requested that the paperwork be resubmitted.Getting the plane back in the sky may be Boeing’s most pressing task, but it certainly isn’t the end of this story. Even with the potential to deliver Max jets before pilot training is finalized, attempting to deliver 30 to 40 planes per month while holding on to the current 42-a-month production rate could be a “logistical nightmare” in terms of costs and human capital, SunTrust analyst Michael Ciarmoli wrote in a report this week before Boeing’s timeline update. Then there’s the matter of compensation for the airlines. With major executives signaling they aren’t happy with what Boeing has offered so far, the company’s estimate for $5.6 billion in customer concessions, net of insurance, is likely to rise. Airlines may also want to be compensated for the public-relations pushes they are planning to help convince the flying public that the Max is safe to fly. American CEO Doug Parker said last week that the cost of the damage to his airline from the Max grounding “should be borne by the Boeing shareholders because this was their failure, not ours.”All of this is before you get to the lasting consequences of the Max crisis, which could range from tougher regulatory reviews to a reconsideration of the rampant consolidation governments have allowed in the aerospace industry. Also on Monday, the EU stopped the clock on its review of Boeing’s purchase of a majority stake in Embraer SA’s commercial-jet program amid concerns that it will wipe out the only remaining viable competition to Boeing and Airbus SE’s duopoly. It’s hard to fathom similar concern in the U.S., where Boeing is regarded as a national champion and lawmakers are concerned about the risks posed by Commercial Aircraft Corp. of China Ltd., or Comac. Indeed, no lawmaker pressed CEO Muilenburg on antitrust during his two days of testimony before Congress last month. But there is room to push back on Boeing’s consolidation of its supply chain. It’s not healthy for one company to have so much power and the Max crisis should force the U.S. to reckon with that. To contact the author of this story: Brooke Sutherland at bsutherland7@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- Zacks
Airline Stock Roundup: AAL & LUV Extend 737 MAX Grounding Period, AZUL in Focus
Low costs aid Azul's (AZUL) third-quarter performance. Meanwhile, the updates on Boeing 737 Max jets by American Airlines (AAL) and Southwest Airlines (LUV) do not bode well.
- Reuters
American Airlines CEO says expects 737 MAX approval in near future
American Airlines Group expects U.S. Federal Aviation Administration approval of Boeing Co's grounded 737 MAX jets in the near future, Chief Executive Doug Parker said on Wednesday. Like other U.S. 737 MAX airlines, American is scheduling without the aircraft until the FAA approves new software and training updates by Boeing after two fatal crashes. Boeing has said it is targeting FAA approval this year.
- Market Realist
Boeing MAX Grounding Costs US Airlines $1 Billion
Combined, Southwest Airlines and American Airlines estimate that the Boeing 737 MAX aircraft grounding will cost them approximately $1 billion this year.
- Yahoo Finance
Aviation professionals are seeing effects of pilot shortage: BAML survey
There is a shortage of pilots, according to a new Bank of America Merrill Lynch survey of aviation industry professionals.
- Market Realist
Boeing: Rising Costs, 737 MAX Grounding Continues
Costs are piling up for Boeing (BA) as the 737 MAX aircraft grounding continues for the eighth consecutive month. The MAX has faced a flying ban since mid-March.
- Reuters
Citigroup to launch digital savings account for American Airlines cardholders
The savings account, Citi Miles Ahead savings account, will offer up to 50,000 miles as a sign-on bonus and a 25% boost on miles earned through the card, the bank said in a statement. American Airlines did not immediately respond to Reuters' request for comment.
- Market Realist
Why Citigroup Says to Buy Delta Air Lines Stock
Delta Air Lines stock gained 1.7% on Friday after Citigroup analyst Stephen Trent suggested investors buy it. His target price implies a 16% upside.
- Market Realist
Airline Stocks: Have Q3 Results Eased Investors’ Fears?
Airline stocks gained altitude in October. The third-quarter results eased investors’ concerns about the global economic slowdown and the MAX grounding.
- Market Realist
Southwest Stock: Why Bernstein Has a Different View
Bernstein analyst David Vernon cut his rating on Southwest stock to “market perform” from “outperform.” However, he raised the target price to $61 from $58.
- Reuters
American Airlines flight attendants stand up to Boeing CEO on 737 MAX
American Airlines' flight attendants union still has safety concerns about the Boeing 737 MAX and is demanding an active role in the relaunch of the grounded aircraft, its president told Boeing Co's chief executive in a letter seen by Reuters. "The 28,000 flight attendants working for American Airlines refuse to walk onto a plane that may not be safe and are calling for the highest possible safety standards to avoid another tragedy," Association of Professional Flight Attendants President Lori Bassani said in the letter.
- Zacks
The Zacks Analyst Blog Highlights: American Airlines, Southwest, Alaska and Allegiant Travel
The Zacks Analyst Blog Highlights: American Airlines, Southwest, Alaska and Allegiant Travel
- Zacks
Timing the Market, Is it Possible? - October 31, 2019
In the long-run, does consistent market timing really matter to be a successful investor?
- Zacks
Airlines ETF Fly Higher Despite Mixed Earnings
Airlines ETF is in solid shape despite mixed earnings, thanks to higher travel demand ahead of the holiday season.
- Zacks
Airline Stock Roundup: Q3 Earnings Beat at AAL, LUV, ALK & ALGT
Low fuel costs boost third-quarter 2019 earnings performance of the likes of American Airlines (AAL) and Alaska Air Group (ALK).
- Zacks
The Zacks Analyst Blog Highlights: Boeing, American Airlines and United Airlines
The Zacks Analyst Blog Highlights: Boeing, American Airlines and United Airlines
- Simply Wall St.
Independent Director James Albaugh Just Bought Shares In American Airlines Group Inc. (NASDAQ:AAL)
Potential American Airlines Group Inc. (NASDAQ:AAL) shareholders may wish to note that the Independent Director, James...
- Skift
Airlines Care Less About the Environment Than They Lead You to Believe
In a Las Vegas hotel ballroom a couple of months ago, Frontier Airlines CEO Barry Biffle promised to reveal how he had solved a question vexing airlines: How to build an environmentally sustainable business without sacrificing profits. Calling Frontier "America's Greenest Airline," Biffle explained it would buy the newest airplanes, cram them with seats, and […]
- Market Realist
How Did Airline Stocks Fare during Q3 Earnings Season?
Airline stocks rose last week. Most of the companies reported better-than-expected third-quarter results. Notably, airline companies' earnings beat the estimates.
- Skift
Why Are Airline Websites So Bad at Inspiring Travel?
Airlines have a problem: They are pretty good at selling flights, but they fail again and again when it comes to inspiring travel, and selling related products, from hotels to vacation packages, and bottles of booze. Enter Jay Sorensen, a former director of marketing at Midwest Airlines, a consultant, and the president of IdeaWorksCompany, which […]
- Skift
Trump Administration Bans U.S. Flights to All Cuban Cities Except Havana
The Trump Administration moved Friday afternoon to ban U.S. airlines from flying to all Cuban airports outside of Havana to punish the country for its support of Venezuela, a move that is probably more symbolic than anything else, as many U.S. carriers long ago gave up on outlying cities because of lack of demand. Within […]
- Yahoo Finance
United CEO Oscar Munoz wants to 'change how you feel flying with us'
United airlines stock is outperforming other airlines after it launched its flight 2020 plan, with a new emphasis on roomier planes and better passenger experiences.
- Skift
American Airlines Gets Ready to Bounce Back in 2020
American Airlines in 2019 grounded one of its newest jets for months, lost a key South American airline partner to a top competitor, sued its mechanics union over an alleged illegal labor action, and struggled with operational reliability. Yet, speaking Thursday on the carrier's third-quarter earnings call, American's top executives were chipper. And why not? […]
- Zacks
American Airlines' (AAL) Q3 Earnings Top Estimates, Rise Y/Y
Low fuel costs boost American Airlines' (AAL) bottom line in third-quarter 2019. The decline in cargo revenues is, however, concerning.
