AMERICAN AIRLINES (#AMERICAN_A)

AMERICAN AIRLINES (#AMERICAN_A) weekly special report based On 1.00 Lot Calculation:

GLOBAL AIRLINES MARKETS:

• GLOBAL AIRLINES INDUSTRY MARKET SIZE MEASURED BY REVENUE IS AROUND $785.6B IN 2022 with recorded increase of 57.6% from 2021. As of 2022 American Airlines has become largest in terms of fleet size and passengers transported, while Delta Air Lines is the largest airline company by revenue, assets value and market capitalization
• MARKET POTENTIAL: Airlines are expected to earn a global net profit of $4.7 billion on revenues of $779 billion. THE GLOBAL AIRLINE INDUSTRY MARKET IS PROJECTED TO GROW with an annual rate of 25.5% in the next 5 years.

AMERICAN AIRLINES GROUP (ANALYSIS AND EVENTS)

• THE COMPANY: American Airlines Group is the largest airline company in the world by the size of its fleet and the number of employees, with $10.807B market capitalization. It is the 4th biggest airline company in the US by market capitalisation after Southwest airlines, Delta Airlines and United Airlines. Its primary business activity is the operation of a network air carrier, providing scheduled air transportation for passengers and cargo.
• THE WORLD HEALTH ORGANIZATION DECLARED COVID -19 GLOBAL HEALTH EMERGENCY OVER, as the number of cases is far lower than during the height of the pandemic, hence it is no longer viewed as a public health emergency.
• TRAVEL SEASON (May - October): As the largest airline in the U.S. in terms of passengers, American Airlines should benefit as we get closer to peak travel season. According to statistics, in the last 15 years during this period, stock prices rose on average 60.8%, ranging from 10.5% up to 177.6%. European airlines like IAG and Air France-KLM, already reported strong summer bookings.
• CHINA REOPENING FOR INTERNATIONAL TRAVEL: Commercial flights to and from the US to China are currently down 94% from pre-pandemic levels and recent China reopening may significantly boost international travel.
• AMERICAN AIRLINES ANNOUNCED THE LARGEST EVER WINTER SCHEDULE TO LATIN AMERICA AND THE CARIBBEAN. The airline, a member of the oneworld Alliance, will operate more than 2,250 flights weekly this winter, serving 90 destinations in the region, representing a seat capacity increase of 10% compared to winter 2022.
• FIRST QUARTER EARNINGS RESULTS: American Airlines posted a $10 million profit in the first quarter as it ramped up flying. The revenue rose 37% in the first three months of the year to $12.19 billion, roughly in line with analyst estimates. For the second quarter of the year, the company forecasts earnings per-share at the high end of analysts’ expectations.

AMERICAN AIRLINES GROUP: PRICE ACTION

• ANALYSTS OPINIONS: Morgan Stanley has a price target of $20, JPMorgan target is $26 while Redburn Partners target $26.
• STOCK PRICE ACTION: American Airlines stock made its all-time high of $59.08 in January, 2018. The stock currently trades around $16.5 which is around 72% below the record high. If a full recovery follows, the stock could increase around 258%. However, the price could decline further.

American Airlines Group, Jun 15, 2023
Current Price:16.50

Example of calculation based on weekly trend direction for 1.00 Lot¹

1. 1.00 lot is equivalent of 1 000 units
2. Calculations for exchange rate used as of 10:15 (GMT) 15/06/2023
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