American Airlines in Talks with SpaceX and Amazon for Service Upgrade
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy AAL?
Source: Yahoo Finance
American Airlines' stock fell 4.30% and hit a 20-day low amid broader market weakness, with the Nasdaq-100 down 1.77% and the S&P 500 down 1.42%.
The airline is in discussions with SpaceX's Starlink and Amazon to revamp in-flight internet and entertainment services, aiming to enhance customer experience in response to competitive pressures from rivals. Additionally, American is considering reintroducing seatback screens on its narrow-body fleet, with a decision potentially coming next month, which would significantly improve passenger entertainment options and overall service quality.
These initiatives are crucial for American Airlines as it seeks to close the gap with competitors like Delta and United, who have been investing heavily in onboard products. The outcome of these discussions could reshape the airline's market positioning and customer loyalty in a highly competitive industry.
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Analyst Views on AAL
Wall Street analysts forecast AAL stock price to rise
15 Analyst Rating
7 Buy
7 Hold
1 Sell
Moderate Buy
Current: 10.180
Low
11.00
Averages
17.93
High
22.00
Current: 10.180
Low
11.00
Averages
17.93
High
22.00
About AAL
American Airlines Group Inc. is a holding company. Its primary business activity is the operation of a major network air carrier, providing scheduled air transportation for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. and partner gateways, including in London, Doha, Madrid, Seattle/Tacoma, Sydney and Tokyo, among others. Together with its regional airline subsidiaries and third-party regional carriers operating as American Eagle. Its cargo division provides a wide range of freight and mail services, with facilities and interline connections available across the globe. It operates approximately 977 mainline aircraft supported by its regional airline subsidiaries and third-party regional carriers, which together operate an additional 585 regional aircraft. Its subsidiaries include American Airlines, Inc., Envoy Aviation Group Inc., PSA Airlines, Inc. and Piedmont Airlines, Inc.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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