Risk Disclaimer: The example below is for illustrative purposes only and is based on price movements derived from Contracts for Difference (CFDs). The calculations reflect hypothetical outcomes using historical or specified price data for the relevant instrument on the stated date and are not indicative of future performance. Any reliance placed on this material is strictly at the user’s own risk.
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)
- 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 capitalization after Southwest airlines, Delta Airlines and United Airlines.
- THANKSGIVING TRAVEL PERIOD (November 17-27): Per Airlines for America (A4A), air travel during the Thanksgiving holiday period this year is likely to touch an all-time high. Passenger volume is expected to be nearly 30 million over the 11-day period. The forecast implies that 2.7 million passengers are likely to fly per day, a 9% increase from 2022 actuals. Per the projection, the Sunday after Thanksgiving, Nov 26, is likely to be the busiest day of the 11-day holiday period. A record 3.2 million passengers are expected to take to the skies on that day.
- AMERICAN AIRLINES EXPECTS THE BUSIEST EVER THANKSGIVING TRAVEL PERIOD: Management expects that more than 7.8 million passengers will avail of its flights in the Nov 16-Nov 28 timeframe.
- UPBEAT TRAFFIC VOLUMES DURING THE LABOR DAY WEEKEND: Upbeat traffic volumes during the Labor Day holiday weekend earlier this year further highlight the encouraging scenario. Despite inflationary pressures and the resultant high interest rates, there is a wave of optimism in the United States surrounding air travel demand. To meet the anticipated demand swell, U.S. airlines are boosting capacity (airlines are offering 253,000 more seats per day during the period).
PRICE ACTION
- STOCK PRICE ACTION: American Airlines stock made its all-time high of $59.08 in January, 2018. The stock currently trades around $12.3 which is around 80% below the record high. If a full recovery follows, the stock could increase around 380%. However, the price could decline further.
American Airlines Group, November 16, 2023
Current Price: 12.30
Example of calculation based on weekly trend direction for 1.00 Lot1
|
Pivot Points
|
Resistance 3
|
Resistance 2
|
Resistance 1
|
Support 1
|
Support 2
|
Support 3
|
|
Profit or loss in $
|
6,700.00
|
4,700.00
|
2,200.00
|
-2,100.00
|
-3,300.00
|
-4,300.00
|
|
Profit or loss in €²
|
6,174.20
|
4,331.16
|
2,027.35
|
-1,935.20
|
-3,041.03
|
-3,962.55
|
|
Profit or loss in £²
|
5,402.35
|
3,789.71
|
1,773.91
|
-1,693.28
|
-2,660.86
|
-3,467.18
|
|
Profit or loss in C$²
|
9,183.96
|
6,442.48
|
3,015.63
|
-2,878.55
|
-4,523.44
|
-5,894.18
|
- 1.00 lot is equivalent of 1 000 units
- Calculations for exchange rate used as of 10:50 (GMT) 16/11/2023
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