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American Airlines Group Inc AAL

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

American Reports Substantial Revenue Improvement in Q2; Maintaining $19 FVE

Burkett Huey, CFA Equity Analyst

Analyst Note

| Burkett Huey, CFA |

No-moat American Airlines reported significant revenue improvement in the second quarter, as domestic leisure travel has recovered quickly and business travel begins to recover in earnest. We are maintaining our $19 per share fair value estimate as we increase short-term estimates for capacity and load factors, though this is partially offset by higher oil prices and a higher effective tax rate.

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Company Profile

Business Description

American Airlines is the world’s largest airline by scheduled revenue passenger miles. The firm’s major hubs are Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C. After completing a major fleet renewal, the company has the youngest fleet of U.S. legacy carriers.

Contact
1 Skyview Drive
Fort Worth, TX, 76155
T +1 817 963-1234
Sector Industrials
Industry Airlines
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 117,400

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