American Airlines Stock To Tread Water?

  • Date: 20-Oct-2021
  • Source: Forbes
  • Sector:Transport
  • Country:Gulf
  • Who else needs to know?

American Airlines Stock To Tread Water?

An American Airlines logo is seen behind a ticket counter at Chicago's O'Hare airport on August 13, ... [+] 2013. The US Justice Department and several states sued Tuesday to block the $11 billion merger between American Airlines and US Airways, saying it would reduce competition and push up fares. AFP PHOTO / Mira OBERMAN (Photo credit should read MIRA OBERMAN/AFP via Getty Images) As the world economy recovers from pandemic blues, rising transportation demand is putting pressure on crude oil inventories. Thus, high benchmark prices are expected to weigh on the airline industry's bottom line for a couple of quarters. In the previous quarter, American Airlines (NASDAQ: AAL) highlighted a strategic plan to reduce $15 billion of long-term debt by the end of 2025. The company plans to achieve this target by utilizing cash from operations. Considering AAL's pre-Covid operating cash flow figure of $3. 8 billion, it requires sizable margin improvement to achieve the deleveraging target in the current high fuel cost and uncertain demand environment. We highlight analyst expectations for Q3 2021 along with quarterly trends in revenues, earnings, and stock price in an interactive dashboard analysis, American Airlines Earnings Preview. As new infections decline, travel and