American Airlines Story

Macroaxis News
  
By Nathan Young

American Airlines is one of the better known names in airline travel and they continue to be a large player in this market. The airline industry is certainly a large part in the overall economy as hundreds of thousands of people fly across the country and around the world. Sure, technology has cut that down as there is Skype and other products that allow for video conferencing, but some meetings and agendas are better suited for face to face interactions. Enough about the general stuff, let us take a look at their recent quarterly numbers and see if they have potential.

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Fama & French Classification

American Airlines Has the Potential to Help Your Portfolio Fly

These numbers represent the fourth quarter results and can be found on the 8-K SEC filing. Fourth quarter 2016 pre-tax profit was $500 million, or $773 million excluding net special charges. Also, total revenue per available seat mile was up 1.3 percent year-over-year, which is the first year this has happened since the fourth quarter of 2014. As a potential investor, the idea that consecutive growth is happening shows the company still has the ability to grow and maintain profitability.

Now, let us switch over to the chart and see if price is reacting in a health way. Taking a look at the monthly chart, you can see there is not a whole bunch of historical data, but from what we can tell is that price is in a range and appears to be going back to the downside. For a short position, this could be great, but we’re here for long term growth and want the company’s stock price to rise. Right now, I would wait for the price to catch some support and be sure to watch the latest numbers because that will influence price direction.




Risks

There are certain risks that are unique to the airline industry, and you can take a look at the most recent 10-K filing for a full list, but here a few to watch out for. One the company cites is that the airline industry is intensely competitive and dynamic, which means even the slightest errors can cause an upset in the businesses numbers. Not only that, the reliance on fuel certainly has an affect on ticket prices because of the changing price in fuel. This is certainly something to watch because if costs can’t be maintained and it trickles down to the consumer, that will cause people to shop elsewhere.

Conclusion

I think an airline industry is good to have in any portfolio, but with anything, be sure to have it in the right proportions. Also, take the time to compare the different airline industries and determine which has the best value. If you still have questions, consult an investing professional as they can help point you in the right direction.

Story Momentum

This article from Macroaxis published on 03 of February contributed to the next trading period price escalation.The overall trading delta to the next next day price was 2.50% . The overall trading delta when the story was published to current price is 9.97% .

Similar stores for American Airlines

a day ago at www.macroaxis.com 
Exercise or conversion by Elise Eberwein of 74666 shares of American Airlines subject to Rule 16b-3
Macroaxis News
Filed transaction by American Airlines Group I officer. Exercise or conversion of derivative security exempted pursuant to Rule 16b-3
over a month ago at http://investorplace.com 
Acquisition by Kirby J Scott of 82500 shares of American Airlines subject to Rule 16b-3
news
Filed transaction by American Airlines Group I officer. Grant, award or other acquisition pursuant to Rule 16b-3
over three months ago at www.macroaxis.com 
Bona fide gift to Derek Kerr of 5140 shares of American Airlines subject to Section 16
Macroaxis News
Filed transaction by American Airlines Group I officer. Exempt bona fide gift subject to Rule 16b-3

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      American Airlines Comparables 
American Airlines is rated second in net income category among related companies. Net income is the profit of a company for the reporting period which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most watched numbers by money managers as well as individual investors.