The last two times CEO Doug Parker has spoken, the stock has gotten trashed.
What he says is nothing new. Of course, capacity can be an issue. Capacity is an issue for ALL industries.
Parker needs to keep his mouth shut and let numbers speak for themselves. And the numbers are pretty good. Planes are about 80% full, with seat prices high. After consolidation and improved industry fundamentals, the outlook for the airline industry as never been brighter. All the extra fees for baggage, priority seating, changing reservations, and food add up to BILLIONS of extra dollars for the airlines.
There are 4 major airlines in the U.S. and that's it. Pricing competition remains reasonable. If you don't believe me, try to book a flight and you'll see most round-trip tickets are in the $500-$600 range compared to $300-$400 a while back. And with the price of jet fuel falling by 45% over the past year, revenue and profit will remain strong over the next few years.
Remember, Wall Street firms don't have your best interest in mind. They want to make money for themselves so they constantly upgrade and downgrade stocks, getting pension funds and hedge funds to trade millions of shares, and produce millions of dollars in trading commissions for Wall Street.
I know it is hard, but ignore the recent "noise" and continue to hold on to your American Airlines stock. This company has NEVER been in a better position to succeed. Don't succumb to the Wall Street trap of upgrades/downgrades, buy/sell, trade fast, etc.
And Doug Parker, PLEASE be quiet. Comment during your quarterly earnings call, not weekly on CNBC.