The stock price of American Airlines Group Inc (AAL) has fallen down in morning trading session on Wednesday. From the beginning of this week till the close yesterday, the stock had fallen by over 1.43%. Since yesterday’s close at $35.15, the stock has fallen by over 2.30% today.
The Texas based company is the world’s largest airline when measured by fleet size, revenue, and scheduled passenger-miles flown, and the second largest by number of destinations served. American together with its regional partners operates an extensive international and domestic network with an average of nearly 6,700 flights per day to nearly 350 destinations in more than 50 countries.
American Airlines is a founding member of Oneworld alliance, the third largest airline alliance in the world and coordinates fares, services, and scheduling with alliance partners British Airways, Iberia, and Finnair in the transatlantic market and with Cathay Pacific and Japan Airlines in the transpacific market. Regional service is operated by independent and subsidiary carriers under the brand name of American Eagle.
The airlines has introduced over new uniforms for its over 70,000 employees. Brady Byrnes, American’s director of global marketing said, “It’s all of us coming together in one look as one brand and one company. I think it brings to light that this is a different company. It may be the same name, but our DNA is changing.” The move comes as American continues to update its brand following its 2013 merger with US Airways, an effort that has included a new logo, an updated livery for its planes, new cabin interiors and redesigned lounges. A new uniform design is one of the most visible steps in the company’s ongoing transformation.
Meanwhile, yesterday, a failed gear indicator forced an American Airlines’ aircraft to make an emergency landing in Tampa Bay. A passenger reported, “As the plane descended toward Tampa, the pilot suddenly pulled up and veered to the left,. Several minutes later, the pilot’s voice filled the cabin with the news: A light in the cockpit indicated at least one side of the landing gear wasn’t going down. They would have to make an emergency landing. Flight 574 was scheduled to leave Phoenix shortly after 6 p.m. but airline staff told passengers that a malfunctioning rear door would require a new plane.” Thankfully, the plane landed normally and no one was hurt. However, the malfunction has not to be taken lightly and analysis upon it is to be done.
Our analysts have given a “HOLD” rating for this stock as they believe that despite the fall, the stock has shown signs of improving. They have also advised investors to not buy this stock as of now. The current stock holders are advised to sell this as soon as it goes up enough to cover the deficit of last week as this stock doesn’t seem to have much room to go up.