AAL - American Airlines Group Inc.

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
33.08
-0.66 (-1.96%)
At close: 4:00PM EDT
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Previous Close33.74
Open33.82
Bid0.00 x 2900
Ask0.00 x 1300
Day's Range33.06 - 34.02
52 Week Range27.02 - 43.89
Volume4,249,117
Avg. Volume5,867,985
Market Cap14.715B
Beta (3Y Monthly)2.04
PE Ratio (TTM)10.61
EPS (TTM)3.12
Earnings DateJul 25, 2019
Forward Dividend & Yield0.40 (1.19%)
Ex-Dividend Date2019-05-07
1y Target Est40.94
Trade prices are not sourced from all markets
  • American-Qantas alliance wins final approval after JetBlue voiced concerns
    American City Business Journals3 days ago

    American-Qantas alliance wins final approval after JetBlue voiced concerns

    The joint alliance between American Airlines and Qantas Airways will allow the pair to operate new routes from the U.S. to Australia and New Zealand.

  • American Airlines-Qantas joint venture wins final U.S. approval
    Reuters3 days ago

    American Airlines-Qantas joint venture wins final U.S. approval

    The U.S. Department of Transportation (DOT) on Friday granted American Airlines Group Inc and Qantas Airways Ltd final approval to operate a joint venture after a prior effort was rejected in 2016. U.S. Transportation Secretary Elaine Chao announced the approval on Friday afternoon, noting it was the first completed review of an airline joint venture proposal during the Trump administration. An application for a joint venture covering the United States, Australia and New Zealand was rejected in November 2016 by former President Barack Obama's DOT.

  • Cellphones a Flight Risk? Could Be on Some Boeing Jets
    Bloomberg3 days ago

    Cellphones a Flight Risk? Could Be on Some Boeing Jets

    (Bloomberg) -- U.S. government officials in 2014 revealed an alarming safety issue: Passenger mobile phones and other types of radio signals could pose a crash threat to some models of Boeing 737 and 777 airplanes.More than 1,300 jets registered in the U.S. were equipped with cockpit screens vulnerable to interference from Wi-Fi, mobile phones and even outside frequencies such as weather radar, according to the Federal Aviation Administration, which gave airlines until November 2019 to replace the units made by Honeywell International Inc. Honeywell estimates that 70 or fewer planes with cockpit screens in need of repair are still flying.Flight-critical data including airspeed, altitude and navigation could disappear and “result in loss of airplane control at an altitude insufficient for recovery,” the FAA said in its 2014 safety bulletin, known as an airworthiness directive.A Honeywell spokeswoman said there have been no reports of display units blanking in-flight due to high-intensity radio frequency/Wi-Fi interference. Airlines and Honeywell have argued that radio signals were unlikely to cause safety problems during flight. The FAA, however, concluded there were safety risks based on assessments it had received from a vendor and an operator.Boeing Co. found the interference in a laboratory test in 2012 and hasn’t seen similar issues on other aircraft, a company spokesman said. Honeywell is aware of only one case where all six display units in a 737 cockpit went blank, company spokeswoman Nina Krauss said. The cause was a software problem, unrelated to Wi-Fi or cellphones, that has been fixed and is currently being flight-tested, she said.The affected 737s are the so-called Next Generation model, a predecessor of the Boeing Max, which was involved in two crashes in less than five months. Cockpit displays on the Max were made by Rockwell Collins, now a unit of United Technologies Corp., not Honeywell. Boeing’s 777s also were covered by the FAA order.The FAA order didn’t quantify the amount of radio signals needed to cause interference problems. An agency spokesman said Thursday that the FAA bases the compliance time for its airworthiness directives on the risk that a condition poses. “A 60-month compliance time frame means the risk is low, and does not need to be addressed right away,” he said.Still, the radio-signal threat extends beyond that specific display system and FAA warning.Numerous mobile phones left on during any airplane flight “could be a real problem,” said professor Tim Wilson, department chair for electrical, computer, software and systems engineering at Embry-Riddle Aeronautical University. The greater the number of phones emitting radio signals, he said, the greater the potential for interference with a plane’s flight system.Airplane ModeMany airlines now permit passengers to turn their phones to “airplane mode,” which allows Wi-Fi transmissions. But mobile phones operate at higher power levels, Wilson said, since the signals must reach a cell tower and not just a local antenna or router. “So cellular service is potentially more impactful,” he added.The FAA in 2013 began the process of allowing wider use of electronic devices on planes, provided airlines could demonstrate it was safe. That prompted an outcry from consumer groups concerned about passengers being subjected to the mobile phone conversations of seatmates.No U.S. airlines allowed it and, in 2018, Congress barred the use of mobile phones for calls during flights.Honeywell says that 70 or fewer planes with affected display screens require repair. That may leave a lot of screens unaccounted for.A plane generally has six display screens. Back in 2014 Honeywell told the FAA that 10,100 display units -- or the equivalent of nearly 1,700 planes -- were affected worldwide. When asked this week about the progress of the fixes, Honeywell’s Krauss said that 8,000 of those screens were replaced and fewer than 400 components, or the equivalent of about 70 planes, still need to be fixed. That still leaves 1,700 units, or the equivalent of about 280 planes, unaccounted for out of the 2014 figure.Honeywell says its calculation of 70 or fewer assumes that some airlines might have had the work performed at non-Honeywell facilities, and regulators in other regions of the world might not have ordered the units replaced. In addition, some planes might have been taken out of service due to age. The actual number of planes operating with faulty components couldn’t be determined by Bloomberg.Krauss said that “even if a blanking incident were to occur,” the units are backed up by multiple redundancies.Both Delta Air Lines Inc. and Southwest Airlines Co. have completed their overhauls, according to the companies. American Airlines Group Inc. has 14 more jets that need refurbished units, and United Airlines still needs to replace components across 17 aircraft, representatives from those companies said.Ryanair Holdings Plc, the large Irish-based discount carrier, told the FAA in 2014 that its planes held 707 of the affected Honeywell units and argued at the time that changing out all of them “is imposing a high, and unnecessary, financial burden on operators.” A Ryanair spokeswoman said the airline hasn’t upgraded all 707 screens but that the carrier inspected all of its display units and “any affected DUs have been replaced.”(Corrects story first published on July 18 to clarify in the second and 13th-15th paragraphs the estimated number of planes still flying with affected display screens; rephrase Honeywell’s comment and clarify the FAA’s conclusions in the fourth paragraph; and provide more details on the cause of a blanking incident in the fifth paragraph. A previous version of the story corrected the headline to say ‘Could’ rather than ‘Are’.)\--With assistance from Thomas Black, Justin Bachman, Christopher Jasper and Jonathan Morgan.To contact the reporter on this story: Anita Sharpe in Atlanta at asharpe6@bloomberg.netTo contact the editors responsible for this story: Flynn McRoberts at fmcroberts1@bloomberg.net, Elizabeth WassermanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • CSX Leads Industrial Earnings Off the Rails
    Bloomberg3 days ago

    CSX Leads Industrial Earnings Off the Rails

    (Bloomberg Opinion) -- To get Brooke Sutherland’s newsletter delivered directly to your inbox, sign up here.It’s going to be unbearably hot across much of the U.S. this weekend, but the early returns on industrial earnings have been decidedly cool. A nearly 30% run in CSX Corp. shares heading into its second-quarter earnings report suggested this was a company where investors thought they could find shelter amid a growing body of worrisome manufacturing data. They were wrong. The shares slumped more than 10% the day after CSX reversed a forecast for low single-digit growth in revenue this year and predicted instead that revenue would dip as much as 2%. The East Coast railroad says it’s being cautious, but the time for conservatism is when you start the guidance-giving process, so that strikes me as an inadequate explanation for such a deep cut. CEO James Foote said the macroeconomic backdrop was one of the most “puzzling” he’s ever experienced and that there are no concrete signs of improvement in weak coal, intermodal and industrial volumes.Elsewhere in transportation, J.B. Hunt Transport Services Inc. and West Coast railroad Union Pacific Corp. actually saw their shares pop on earnings, but that seems to be a case of more realistic expectations than a drastically more positive view of the macroeconomic environment. J.B. Hunt was essentially flat going into earnings, for example, and Union Pacific had sold off in sympathy with CSX before it reported. Union Pacific said it expects second-half volume to be down about 2%, which implies a decline for the full year compared with an earlier call for a low-single digit gain – basically mimicking CSX’s move. The other challenge with CSX is that it appears to be far enough along in its conversion to precision-scheduled railroading that there isn’t as much fat left to cut as there is at Union Pacific. But it’s track record of improved performance is still relatively short, capping its ability to make market share gains amid a surplus of capacity and lower spot rates in the trucking market. Bloomberg News’s Cameron Crise points out the sharp divergence in the performance of S&P 500 railroads and FedEx Corp. over the past, calling it a proxy of sorts for the trade war-inspired slowdown that’s hit companies with international exposure like FedEx harder than those focused on the domestic market. If U.S. railroad stocks fail to recover from the CSX-inspired selloff and the gap to FedEx narrows, that could be a sign that the domestic economy and the bull market are running out of steam, he writes. FedEx, of course, has plenty of idiosyncratic issues holding back its stock. The company’s annual report filed this week included interesting disclosures abut the risk of an activist shareholder getting involved and some additional detail on the logistics investments that could render Amazon.com Inc. a competitor. Things were a bit better at the multi-industrial companies, but there was still cause for concern. Textron Inc. said its aviation backlog slipped by $100 million in the second quarter as macroeconomic concerns and President Donald Trump’s threat to impose wide-ranging tariffs on Mexico spooked business-jet customers. That’s counteracted by Honeywell International Inc.’s report of double-digit sales growth for new business jet equipment, but still a troubling sign of just how nervous people are about making big investments. You can usually count on Honeywell to churn out an earnings beat, and the company didn’t disappoint, raising its profit guidance for the full year. But the outlook wasn’t as robust as some analysts were expecting. Organic sales growth of 5% could end up being the pace to beat this quarter, but that was weaker than anticipated and a forecast for 2% to 4% growth in the third quarter would suggest an accelerating slowdown. The dynamic of somewhat disappointing sales numbers but steady earnings growth in some ways reinforces Honeywell’s argument that last year’s breakups and a pristine balance sheet will make it more resilient in a downturn, but I remain unconvinced that margins for anything except funeral homes are recession-proof. It helped Honeywell that the sales weakness was mostly confined to its safety and productivity solutions unit, the smallest of its four main businesses, and aerospace remained impressively robust with 11% organic sales growth. The industrial companies on tap to report earnings next week may not be so lucky, particularly 3M Co., which seems destined for yet another guidance cut to reflect the deepening slowdown.ALL BOEING WANTS FOR CHRISTMAS IS A FLYABLE MAXBoeing Co. this week pre-announced a $4.9 billion after-tax second-quarter charge to reflect its estimate of compensation owed to airlines grappling with a grounding of the beleaguered 737 Max that’s now entering its fifth month. American Airlines Group Inc., Southwest Airlines Co. and United Airlines Holdings Inc. this week pulled the Max from their schedules through the beginning of November – a timeline that jibes with Boeing’s call for the plane to return to service during the fourth quarter. But the risk remains that the grounding stretches into 2020. The Federal Aviation Administration, mindful of restoring its reputation as the global standard-bearer of safety protocol, is keen to coordinate a return to service with European and Asian regulators. And while a fix for the flight-software system linked to the Max’s two fatal crashes has essentially been completed, there remain hurdles to remedying a separate issue with a microprocessor that was identified in June, including convincing the FAA that a software update is sufficient, according to the Wall Street Journal. Even if Boeing can get the plane recertified and flying again by the fourth quarter, it matters a great deal which particular month that happens. Airlines estimate it will take a month to 45 days to complete the maintenance necessary to bring the Max jets they already operate out of storage, which is to say nothing of the additional planes they had been expecting to support busy schedules. I would imagine airlines’ demands for compensation would rise materially if they are forced to scramble and reassess capacity for holiday flights. Ryanair Holdings Plc said this week it’s prudently planning for a December return of the Max, but pared its growth plans for the 2020 summer travel season. It can only accept six to eight new Max planes per month, which will leave the budget airline with about half of the fleet it had been planning on for that peak season. Data points like that make me highly skeptical of Boeing’s aspirations to ramp up to a 57-per-month production pace for the 737 program in 2020.A WORD ON WAREHOUSESThere has been a surge of spending over the past few years on industrial warehouse assets. The latest deal came this week , when Prologis Inc. agreed to buy Industrial Property Trust and its 236 properties in areas such as the San Francisco Bay Area, Chicago and New Jersey for about $4 billion. This follows Prologis’s acquisition of DCT Industrial Trust Inc. last year for more than $8 billion and its pursuit earlier this year of GLP Pte’s U.S. warehouse assets, which ultimately went to Blackstone Group LP instead for $18.7 billion. Meanwhile, Tom Barrack’s Colony Capital Inc. is exploring a sale of its unit that owns warehouses as part of a strategic review meant to resuscitate its plunging market value, according to Bloomberg News. I understand the logic of these deals: Retailers are under immense pressure to build out their e-commerce capabilities and shorten their delivery times and on the face of it, that trend looks less vulnerable to the trade war and macroeconomic uncertainties than many others. Even so, it gives me pause to hear Honeywell say customers for its Intelligrated warehouse-automation business are pushing major system rollouts into the second half of the year. Intelligrated is still growing rapidly, with organic sales growth of more than 20% for the first half of 2019, and Honeywell CEO Darius Adamczyk said he knew for a fact that the delayed orders hadn’t gone away. But going back to my earlier comment about funeral homes, I’m getting less confident that even this trend can withstand the test of a true downturn. I asked Bloomberg Opinion's retail expert Sarah Halzack what she thought. She pointed out that companies like Walmart Inc. and Williams-Sonoma Inc. are too far along in converting their businesses to e-commerce to back out, whereas those who are already struggling such as J.C. Penney Co. will find it harder to justify making those kinds of investments.DEALS, ACTIVISTS AND CORPORATE GOVERNANCEJohn Flannery has resurfaced. The former CEO of General Electric Co. will now be an advisory director to Charlesbank Capital Partners, a middle-market private equity firm managing more than $5 billion of capital. I’ve always felt a bit bad for Flannery, who spent 30 years working his way up the ladder at GE and finally ascended to the CEO post, only to find out that his actual job was going to be more akin to a garbage man. Sure, he made his share of mistakes as CEO. But the reality is he was probably never going to last in that job no matter what he did. GE needed one CEO to publicize and unearth the skeletons in its closet ($22 billion goodwill writedown on the disastrous Alstom SA deal, $15 billion reserve shortfall in the long-term care insurance business) and another CEO to try to fix the mess. That’s now Larry Culp. Still, it has to sting a bit that Steve Bolze, Flannery’s competitor in the race to succeed Jeff Immelt, is a senior managing director at Blackstone, a slightly more prominent firm than Charlesbank. Bolze is blamed by many investors for mismanaging GE’s power unit and exacerbating the financial pain from a slump in gas turbine demand.Crane Co.’s bid for Circor International Inc. got a last minute surge of support. Mario Gabelli’s Gamco Investors Inc. agreed to tender shares to Crane after the buyer raised its price to $48 a share earlier this month. Roughly 45% of outstanding Circor shares have been elected to be tendered, people familiar with the matter told Bloomberg News. That’s not enough to force a merger (although there are still a few more hours before the tender offer expires at midnight), but it should be enough to get the attention of Circor’s board’s. In the wake of the Crane offer, Circor laid out a bold (and by nature, rather fluffy) plan to boost margins and lower debt. Shareholders are now signaling quite loudly that they don’t have much faith in the company’s ability to follow through. It’s pretty remarkable to see this level of pushback outside of an annual meeting, though. I had worried Crane’s bid might have been the victim of bad timing, with its offer becoming public a few weeks after Circor’s 2019 meeting. The fact that Circor’s board had privately received the Crane offer prior to the meeting and didn’t feel a need to tell investors about it has been one of Gabelli’s chief criticisms. This level of support from Circor shareholders may save Crane from having to wait a year to relaunch its bid with a proxy fight.Osram Licht AG, the lighting maker that’s agreed to sell itself to Bain Capital and Carlyle Group LP, disclosed this week that Austrian industrial manufacturer AMS AG had made a fresh offer for the company at a higher price. Bain and Carlyle are offering 35 euros per share, or 3.4 billion euros ($3.8 billion), while AMS had proposed to pay 38.50 euros per share, or about 3.7 billion euros. The problem is, AMS itself is valued at less than what it offered for Osram; it’s had negative free cash flow for at least the past two years; and it’s already carrying about 1.2 billion euros of net debt. Osram agreed to let AMS perform due diligence, but said the probability of a deal materializing was “rather low.” Literally the same day that its latest offer was disclosed, AMS said it was walking away. In some ways that’s actually kind of surprising – why wouldn’t you take the opportunity to do due diligence? But anyway, this amusing M&A adventure has now come to an end.Callon Petroleum Co. agreed to buy Carrizo Oil & Gas Inc. in an all-stock transaction valued at $3.2 billion including debt. Bernstein analyst Bob Brackett called it a “pretty lame deal all-in-all”, while my Bloomberg Opinion colleague Liam Denning said the merger sounds a “distinct sad-trombone note.” Carrizo helps Callon double down on the Delaware Basin with contiguous acreage and lets it add free cash flow on the cheap, but it also dilutes its status as a pure-play operator by adding acreage the Eagle Ford region, where it may be harder to find cost savings. Some investors may have viewed Callon as a target and are disappointed to see it on the other end of a deal. The consolidation of shale players is healthy and necessary, Liam writes. But the fact that Carrizo has chosen to sell at a modest premium when its stock was trading at the lowest levels in a decade is pretty telling, too.CRH Plc agreed to sell its European plumbing and heating-distribution business to Blackstone for 1.64 billion euros ($1.9 billion). CEO Albert Manifold has been trying to steer the company toward higher growth markets including cement and raise money for acquisitions. This deal helps it do both. Davy analyst Robert Gardiner says the purchase price is attractive at about 16 times earnings before interest and taxes.BONUS READING Saturday Will Be Hot. Oil and Gas Will Be Not: Liam Denning Axalta Is Said to Draw Interest From Kansai Paint and PPG Ex-Cons Find Second Chances Easier to Get in Tight Labor MarketThe Moon Is the Next Frontier in Rivalry Between China and U.S. Porch Pirates Spot Criminal Opening in Amazon Prime Day BonanzaTo contact the author of this story: Brooke Sutherland at bsutherland7@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Reuters3 days ago

    UPDATE 2-American Airlines-Qantas joint venture wins final U.S. approval

    The U.S. Department of Transportation (DOT) on Friday granted American Airlines Group Inc and Qantas Airways Ltd final approval to operate a joint venture after a prior effort was rejected in 2016. U.S. Transportation Secretary Elaine Chao announced the approval on Friday afternoon, noting it was the first completed review of an airline joint venture proposal during the Trump administration. An application for a joint venture covering the United States, Australia and New Zealand was rejected in November 2016 by former President Barack Obama's DOT.

  • AAL Stock Looks Ready To Take Off After Earnings
    InvestorPlace3 days ago

    AAL Stock Looks Ready To Take Off After Earnings

    Shares of American Airlines (NASDAQ:AAL) have been a big laggard in 2019. Most major stock indices are up strongly since the beginning of the year and trading near all-time highs. AAL stock, however, has basically treaded water and consolidated most of the year. Cheap comparative valuations, solid fundamentals and improving technicals make American Airlines attractive at current levels. Time to book a flight on AAL stock as it readies for lift off.Source: Shutterstock American Airlines will report earnings before the market opens on July 25. Expectations are for $1.77 in EPS on $11.96 billion in revenue. AAL earnings have beaten expectations each of the past four quarters and I look for another beat this quarter as well. The company last week said TRASM (Total RevenueAvailable Seat Mile) for the second quarter would come in at 3-4% growth, higher than the previously expected 1-2% growth. This should bleed through to better earnings for AAL. Click to EnlargeInvestorPlace - Stock Market News, Stock Advice & Trading TipsAAL stock is certainly not expensive on a valuation basis. The TTM P/E is below 8 and near the cheapest levels of the year. This is a major discount fellow competitor United Airlines (NYSE:UAL) which has an EPS approaching 10. A slight multiple expansion for AAL stock to even 9 would provide a significant boost to the shares.American Airlines stock is looking attractive from a technical perspective. Shares are poised for an upside breakout after holding support at the $30 area. AAL stock is back above the all-important 200 day moving average at $33.53. Both momentum and MACD remain positive. After a series of lower highs, American Airlines stock is on the cusp of making a new relative high. Click to EnlargeAmerican Airlines been a huge underperformer to rival Delta Airlines (NYSE:DAL) as seen in the chart. AAL stock is up just 5% year-to-date compared to a hefty 25% gain for DAL stock in the same time period. Expect that divergence to start to converge with American being a relative outperformer to Delta over the coming weeks. * 10 Tech Stocks That Are Still Worth Your Time (And Money) It is getting more and more difficult to find value stocks in the current stock market environment. Investors should consider adding AAL stock to their portfolio on any weakness. An initial price target would be the 2019 highs near the $37 area. The current dividend yield of 1.19% provides an additional income stream as well.As of this writing, Tim Biggam did not hold a position in any of the aforementioned securities. Anyone interested in finding out more about option-based strategies or for a free trial of the Delta Desk Research Report can email Tim at timbiggam@gmail.com. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post AAL Stock Looks Ready To Take Off After Earnings appeared first on InvestorPlace.

  • Will Escalated Costs Dampen Southwest's (LUV) Q2 Earnings?
    Zacks3 days ago

    Will Escalated Costs Dampen Southwest's (LUV) Q2 Earnings?

    Increased non-fuel unit costs due to the Boeing 737 MAX groundings have the potential to impact Southwest's (LUV) Q2 results. However, robust demand and solid passenger yields should lift results.

  • American adds new routes for Texas, Texas A&M football games
    American City Business Journals3 days ago

    American adds new routes for Texas, Texas A&M football games

    Anticipating increased traffic for some notable college football games this season, American is adding routes including some in Texas.

  • Is a Beat Likely for American Airlines (AAL) in Q2 Earnings?
    Zacks3 days ago

    Is a Beat Likely for American Airlines (AAL) in Q2 Earnings?

    American Airlines' (AAL) second-quarter 2019 results are likely to be driven by an uptick in passenger revenues. However, non-fuel unit costs are expected to increase, limiting bottom-line growth.

  • Free Profit Opportunity in Southwest Stock
    InvestorPlace3 days ago

    Free Profit Opportunity in Southwest Stock

    There was a time when the transports were the hot sector to watch on Wall Street. They served as a great barometer to the whole market. But they have long lost their leadership role except for sporadic stints. Airliner Southwest Airlines (NYSE:LUV) stock tracks the iShares Transportation Average ETF (BATS:IYT) very tightly. And it now sits in the middle of the six-month range.Source: Shutterstock This is important to note because LUV is going to deliver earnings next week. This week United Airlines (NASDAQ:UAL) stock rallied off its earnings report, so there is definitely an opportunity for LUV stock price to do the same next week.But I am most interested in the support below, and this will become clear at the end.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe short-term reactions to earnings are always binary, so this adds a bit of gambling flair to the trade. Even if management gives us the results ahead of time, we cannot guess how investors will react to them. Handling UAL Stock Into EarningsIt's all about managing expectations and we all know how things can go bad like what happened to Netflix (NASDAQ:NFLX) yesterday. The estimates create uncertainty, because if management misses them, investors sell the news even if the results are actually good in absolute terms. * 10 Tech Stocks That Are Still Worth Your Time (And Money) But it is important to note that this binary effect is temporary. The fundamentals and the technicals will retake the reins of the Southwest stock price once the event headlines abate.Last year, the transports fell 25% into Christmas but has recovered well since then. Like LUV, the IYT also now sits in the middle of the six month range.So what does this mean for LUV stock price at these levels? The bulls are in control and will continue to buy the dips. After all we now know that the Fed cast its safety net back out.So, if I'm long the stock already, then I have no reason to leave it because the fundamentals that got me into LUV have not changed. Airlines have developed a new way of doing business in the U.S. that has almost erased the old stigma of shoddy operations.I am flying today and I can assure you that I paid for many extra fees that didn't exist just a couple years ago. Critics point out that they lack overall pricing power but they are making up for it with additional fees from every angle.This is all to say that the Southwest team is executing on plans well enough to warrant the current valuation.Technically speaking, LUV stock has been setting higher lows while knocking at the $54 per share neckline. It has also bounced off of $48-per-share support zone four times, with the exception of a deeper dip into the Christmas market-wide debacle.So the bulls have the benefit of solid support below while attacking a resistance level. Often times the bears get tired of defending the resistance and the bulls overshoot higher. In this case, the outside target would be $58 per share with resistance at $56.Some investors prefer to hold stocks for the very long term. And for those, the $58 resistance won't matter. For the faster traders, $58 is a target area to exit the trade, or at least book some profit.However, if the bulls are able to break through that resistance then it becomes the next upside opportunity to extend the rally and set new all-time highs. There would obviously be resistance at $64 in that scenario. The Bottom Line on Southwest StockWhile owning shares of LUV is a legitimate trade opportunity, I prefer to use options in my trading. So in this case, since we noted that that there is solid support below, I prefer selling downside puts into what others fear. This way I can create income without any money out of pocket.For example, I can sell the Dec $45 put and collect $1 for it. All I need to profit is for the LUV stock price to stay above that level. Otherwise I own the shares at $45 and break even at $44 per share.Compare this with owning shares now and risking my money with no margin for error. By selling the puts I create a 13% moat around my risk. And I don't even need a rally to win.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post Free Profit Opportunity in Southwest Stock appeared first on InvestorPlace.

  • Is American, Southwest or Delta bigger? Depends what you measure
    American City Business Journals3 days ago

    Is American, Southwest or Delta bigger? Depends what you measure

    Depending on the metric used, several different carriers could be considered the largest airline in the U.S.

  • Market Realist3 days ago

    How Much the 737 MAX Grounding Could Cost Boeing

    The 737 MAX fiasco is expected to hurt Boeing’s (BA) second-quarter financial results severely.

  • American wants to double flights from DFW to this South American country
    American City Business Journals4 days ago

    American wants to double flights from DFW to this South American country

    American Airlines is adding more routes from Dallas Fort Worth International Airport to Ecuador, doubling what it originally applied for earlier this month.

  • Bloomberg4 days ago

    Trump to Host U.S., Qatar Airline CEOs in White House Showdown

    (Bloomberg) -- President Donald Trump is poised to meet with the heads of American Airlines Group Inc., United Airlines Holdings Inc. and Qatar Airways to discuss competition issues amid a long-running feud pitting the U.S. carriers against their Persian Gulf rivals, people familiar with the matter said.Vice President Mike Pence will also attend the meeting Thursday afternoon with American Chief Executive Officer Doug Parker and United’s Oscar Munoz, said the people, including a White House official, who asked not to be named ahead of the private discussions. American, United and Delta Air Lines Inc. have long argued that government subsidies enable Qatar Airways, Emirates and Etihad Airways to compete unfairly.The White House meeting comes two weeks after Trump hosted the emir of Qatar at the White House. Qatar Airways CEO Akbar Al Baker will also attend the Thursday meeting, as will Fred Smith of FedEx Corp., Robin Hayes of JetBlue Airways Corp. and Bill Flynn of Atlas Air Worldwide Holdings Inc., a freight and charter company. Those three U.S. companies have opposed American, United and Delta on the subject of the Persian Gulf carriers.The U.S. and Qatar have recently been at odds over whether Qatar Air’s stake in Air Italy is meant to undercut U.S. competitors, despite a previous deal between the nations. U.S. Secretary of State Mike Pompeo said in April that he was “personally engaged on this issue and we are working to make sure that every party to those agreements complies with every element of those agreements.”Delta CEO Ed Bastian isn’t attending the meeting because he’s traveling abroad. The Atlanta-based airline reaffirmed this month that it is considering an investment in Italy’s Alitalia.To contact the reporters on this story: Justin Bachman in Dallas at jbachman2@bloomberg.net;Josh Wingrove in Washington at jwingrove4@bloomberg.net;Jennifer Jacobs in Washington at jjacobs68@bloomberg.netTo contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, ;Michael Shepard at mshepard7@bloomberg.net, Tony RobinsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • American City Business Journals4 days ago

    From Delta to Frontier: The fastest-growing airlines at RDU in 2019

    It was another month of record traffic at RDU, and new numbers show which carriers are getting the most flyers.

  • Trump meets with airline CEOs over Qatar subsidy accusations
    Reuters4 days ago

    Trump meets with airline CEOs over Qatar subsidy accusations

    U.S. President Donald Trump met on Thursday with the chief executives of major American airlines to discuss their accusations that subsidies by Qatar and United Arab Emirates are costing jobs in the United States. The meeting between Trump and the CEOs of American Airlines , United Airlines , JetBlue Airways Corp , FedEx Corp and Atlas Air included Vice President Mike Pence, the White House said.

  • Reuters4 days ago

    UPDATE 4-Trump meets with airline CEOs over Qatar subsidy accusations

    U.S. President Donald Trump met on Thursday with the chief executives of major American airlines to discuss their accusations that subsidies by Qatar and United Arab Emirates are costing jobs in the United States. The meeting between Trump and the CEOs of American Airlines , United Airlines, JetBlue Airways Corp, FedEx Corp and Atlas Air included Vice President Mike Pence, the White House said.

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