|Bid||0.00 x 900|
|Ask||0.00 x 800|
|Day's Range||83.21 - 84.43|
|52 Week Range||77.02 - 97.85|
|Beta (3Y Monthly)||1.22|
|PE Ratio (TTM)||8.54|
|Earnings Date||Oct 14, 2019 - Oct 18, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||109.31|
The Chicago-based carrier has long sought to be the dominant U.S.-based carrier to China (and beyond), but now that focus on China could be growing increasingly problematic.
Expansion-related updates from the likes of United Airlines (UAL) and Southwest Airlines ((LUV) featured in the headlines in the past week.
Nearly 50 million people travel to Central Florida each year by air, passing through Orlando International Airport, the region's primary air hub — and most of them use the same seven airlines when booking their flights. Orlando's main airport services dozens of air carriers from all over the world, and the most popular carriers include Southwest Airlines (NYSE: LUV) and Delta Air Lines (NYSE: DAL). Further, top carriers such as Spirit Airlines (Nasdaq: SAVE), Southwest and Frontier Airlines are jockeying to stay at the top by adding new services this year from Orlando International to locations such as Dallas, Houston, Cincinnati, San Diego and the Dominican Republic.
The past year and a half haven't been easy for American Airlines (NASDAQ:AAL). American Airlines stock is down a painful 55% from its January-2018 peak.Source: Shutterstock Every time it looked like it might snap out of that funk, it's managed to find an even lower low. The weakness will ultimately serve as a buying opportunity, even if this month's new 52-week lows don't end up being the ultimate bottom.At a trailing P/E of 7.8 and a forward-looking P/E of 4.6, AAL stock is priced as if an apocalypse is inevitable. That is to say, the worst-case scenario is already priced in, and then some.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs to when American Airlines stock will rebound though, and how well it recovers, most of that will hinge on the carrier's international business. Much of it's being rearranged, largely for the purpose of expansion. Expansion Plans and American Airlines StockAt first glance, news that American Airlines was adding another flight to and from Phoenix to Hermosillo, Mexico, could be shrugged off. Airlines add, and drop, regular flights all the time, as dictated by changing demand. * 10 Cheap Dividend Stocks to Load Up On This addition is tacked on to a string of new nonstop flights to and from Mexico has already added this year, however. American also added two new flights from Dallas to Tokyo two weeks ago. Around the same time, it announced a new route from Dallas and Tel Aviv, Israel, restoring service that was discontinued in early 2016.London, Athens, Madrid and Munich were also destinations of new flights from American this summer, even if only on a temporary basis.Africa is also an increasingly important destination from the United States. Vasu Raja, vice president of Network & Schedule Planning at American Airlines, explains:"We see the ability to develop Africa over multiple years - three, five, seven years. Today, we go fly to Casablanca, but through our partnership through Royal Air Maroc we can connect customers to a number of destinations in Africa. As those connections continue to grow, we'll be able to create value for more customers, and as we see where it is the customers grow, we can go to those places nonstop from a U.S. hub."The same may apply all over the world now, however."I think in three years what you will see is a much more globally diversified American Airlines that is operating in the markets that three or four years ago that it wouldn't have dared to dream about," Raja added. Longevity in QuestionThe underpinnings of the expansion are debatable, as is the longevity of the demand.Chief among concerns is a trade war, largely being fought with tariffs, between China and the United States that could create a ripple effect across the globe. Some fear it already has.The current administration hasn't been particularly dovish with Mexico in terms of trade either, calling into question the need for American Airlines' new routes to several destinations in Latin America.Concerned owners of American Airlines stock will also point out that the new routes added to Iceland in the middle of last year, in response to a travel boom at the time, are all going to be discontinued by October."The likely problem is that the airlines jumped in too quickly as soon as they saw a boom in Iceland's visitor numbers without anticipating the slowdown that will likely occur," Laura Beaton, Travel & Tourism analyst with London-based GlobalData said of the recently-added routes.It's entirely possible all carriers could be making a similar mistake with the addition of several new international routes. Changing Air Travel and American Airlines StockOn the other hand, it's also possible the air travel industry is at a critical turning point, where incomes are high enough everywhere and air travel is affordable enough everywhere that new international demand is here to stay.One underlying evolution driving that paradigm shift may be the jets themselves.It's difficult to call the early days of the 737-MAX series of passenger jets from Boeing (NYSE:BA) anything but a disaster. Two fatal crashes of the plane just a few months after they first took to the air have proven incredibly disruptive to previously-planned routes that have since been canceled or serviced by other planes with a different number of seats.Still, beyond the computerized safety system that appears to be the culprit of both crashes, the 737-MAX had proven to be 20% more fuel-efficient than comparable planes, thanks to the structural design of the aircraft.That upside still stands. Other aircraft designs will certainly borrow from the best aspects of the 737 MAX.Another key development? More, and better, infrastructure. More international hubs are being established, and more airports are being built.Meanwhile, existing airports are being improved in a way that allows them to accommodate more planes and passengers. This is particularly true of so-called "emerging and developing economies," where American Airlines is slowly but surely pushing its way in. Looking Ahead for American Airlines StockIn its long-term air travel outlook recently updated by International Air Transport Association (IATA), the organization predicts that the number of annual air travelers will more than double over the course of the next twenty years.By 2040, more than 20 billion total air trips are expected to be made. China and India will be featured prominently in that growth, as will Latin America. American Airlines is simply looking to stay ahead of that trend. Rival airlines like Delta Air Lines (NYSE:DAL) and United Airlines Holdings (NASDAQ:UAL) are seeking to do the same.But, somehow for the perpetually-less-profitable American Airlines, the effort to expand internationally is an opportunity to grow its margins to levels more like those of its peers.Still, it's an awfully big risk, if the industry's growth trend isn't as reliable as it seems on the surface.As of the time of this writing, James Brumley did not hold a position in any of the aforementioned securities. To learn more about James, visit his site at jamesbrumley.com, or follow him on twitter at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post This Big Bet on International Growth Could Hurt American Airlines Stock appeared first on InvestorPlace.
The Chicago-based carrier has done something with an Airbus jet engine that the airline never before had done.
Lori Augustine will be in charge of a vast — and growing — network of airports from which United operates in the United States.
The number of MEM passengers has increased by about 938,000, or 20.7 percent, since the 2014-15 fiscal year.
United Airlines' (UAL) supplementary services to Tokyo's Haneda airport, ahead of the Olympic Games 2020, should attract substantial traffic.
The first sign of what's to come will show up in larger-than-life fashion on Monday at Chicago's O'Hare International Airport.
United is hoping the new service will give the airline a competitive advantage as it gears up for the 2020 Summer Olympics in Tokyo.
United Airlines continues to be the largest U.S. airline to Tokyo with more nonstop flights than any other U.S. carrier New Haneda service tickets go on sale Saturday, Aug. 17 New Haneda flights double ...
Aer Lingus hopes to gain in Chicago from Norwegian Air’s pain in other markets. Aer Lingus, the flagship Irish carrier that flies nonstop between Chicago’s O’Hare International Airport and Dublin, Ireland twice daily, commenced a massive fall fare sale within hours of low-fare international carrier Norwegian Air's announcement Thursday that it would cease all flying from markets in the United States to all cities in Ireland, effective mid-September.
For United Airlines, it was definitely not business as usual in Hong Kong the past several days, but here's how the carrier managed to successfully navigate through all the tumult.
Denver International Airport’s top two airline passenger carriers — have responded to the airport’s decision to terminate its 34-year, $1.8 billion Great Hall construction contract with Great Hall Partners. While DIA's CEO Kim Day said at a news conference Tuesday that DIA has the backing of its airline partners, representatives from Southwest (NYSE: LUV) and United (NASDAQ: UAL) said they are following developments with the project closely. Day said Tuesday that the contract termination was caused by several factors and could alter the breadth of the public-private partnership project, which the Denver City Council approved in 2017. “We are very interested to learn more and work in partnership with airport leadership to determine the project’s next steps.” Erin Benson Scharra, a spokeswoman for United, highlighted the airlines’ close working relationship with DIA in her statement.
The Chicago-based airline has promoted Tom Doxey to a new role overseeing all of the carrier's maintenance operations, among other responsibilities.
Doxey most recently served as vice president of Technical Operations and under his new role will report to United's Chief Operations Officer, Greg Hart. Doxey joined United in 2016, assuming the role of chief financial officer for operations, overseeing teams that provide financial and analytical support to United's operations groups, including Tech Ops.
A new report out on Tuesday from OAG details how British Airways is making a mint on one particular route, and United Airlines looks to have taken notice.
ATLANTA , Aug. 13, 2019 /PRNewswire/ -- ExpressJet Airlines, a United Express carrier, announced Larry Snyder has been named Managing Director of its Operations Support Center. Snyder will lead dispatch ...
The shares have hit hard times since the release of the company's latest earnings report, along with the impact of some operational problems during the quarter coming to light.