- Volatility in the crude oil market and the rise in crude oil prices in the future could hamper AAL’s bottom line.
- Labor issues, if not sorted out, could lead to higher labor costs.
- Low-cost carriers’ aggressive expansion into the markets could challenge legacy carriers.
All in all, American Airlines still has a lot of work to do.
You can gain coverage to airline stocks by investing in the iShares Transportation Average (IYT), which holds 4.2% in Alaska Air (ALK), 3.9% in United Continental (UAL), 3.8% in Southwest Airlines (LUV), 3.6% in Delta Air Lines (DAL), 2.8% in AAL, and 1.7% in JetBlue Airways (JBLU).
Let’s move on now to see the best approach for valuing American Airlines.
View more information: https://marketrealist.com/2016/06/american-airlines-key-strengths-weaknesses/