America Airlines

Company overview.

American Airlines and American Eagle offer an average of nearly 6,700 flights per day to nearly 350 destinations in more than 50 countries. American has hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C. American is a founding member of the oneworld alliance, whose members serve more than 1,000 destinations with about 14,250 daily flights to over 150 countries. Shares of American Airlines Group Inc. trade on NASDAQ under the ticker symbol AAL. In 2015, its stock joined the S&P 500 index.

Is AAL a good pick?

The airline industry was one of the hardest hit during the pandemic, and companies such as American Airlines carried out different strategies to save their business, such as resorting to debt. Two years after the onset of the current problem, almost most of the world's population has been vaccinated, but the fear of new variants is still latent.

On the US government website, we can find interesting data, which indicates that in the course of 2021 the number of travelers per day in the United States was gradually increasing, and compared to 2019 levels we realize that we are almost at the same levels of flights of that nearby 2019 and best of all, the trend is upward. With almost the same level of business, but with the stock well below its value before the start of the pandemic, will this be the beginning of the end of the problems for the airlines?

For all of 2020, their annual revenue was $17,337B, a 62.12% decrease from 2019.

In this current year AAL had good quarterly reports, reaching in September a revenue increase of 186% over the same month last year, indicating a positive response in the increase of international passengers in 2021.

Analysis technical.

From June to December, the stock lost 38% of its value and with periods of high volatility, today we are at $18.00 per share. The maximum price in 25 weeks was $26.00 on June 3 and the minimum price was $16.30 on December 1.

On September 9 a death cross was confirmed and the downtrend continued to $16.30, but in the last month, the RSI started to come out of the oversold zone and also the MACD crossed upwards its signal and is rising with a good perspective to pass its zero, these changes in the indicators are reflected with a revaluation of 10% in the last 15 days.

The SMA50 is close to the price and with this momentum, it is reasonable to think that the price will break it, but the volume of the trades in the market is decreasing and if there are not any good fundamental news in the next days, the price will go again near to $16.30.