American Airlines Partners with Google on Sustainable Fuel Deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: NASDAQ.COM
- Stock Price Increase: American Airlines Group (AAL) closed at $14.09 on Tuesday, up 3.60%, primarily driven by its sustainable aviation fuel deal with Google, although the stock has fallen 33% since its IPO in 2005.
- Surge in Trading Volume: The trading volume reached 149.7 million shares, approximately 127% above the three-month average of 66 million shares, indicating strong market interest in the company's future prospects, particularly amid falling oil prices.
- Sustainable Fuel Goals: The partnership with Google will advance American Airlines towards its goal of using sustainable aviation fuel for 10% of its fuel by 2030, despite its current reliance on expensive jet fuel and the potential profit impact from fluctuating oil prices.
- Industry Trends: Airline stocks generally rose due to falling oil prices, with Delta Air Lines and United Airlines gaining 3.78% and 4.09% respectively, reflecting market resilience in travel demand and responses to fuel cost pressures.
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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: 13.420
Low
11.00
Averages
17.93
High
22.00
Current: 13.420
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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