American Airlines Stock Drops Amid Rising Oil Prices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy AAL?
Source: Benzinga
- Oil Price Impact: American Airlines shares fell 4.61% to $13.45 as crude oil prices approached six-month highs due to escalating tensions in the Middle East, reflecting market concerns over the airline's profitability.
- Cost Pressure Intensifies: Rising crude prices lead to increased jet fuel costs, one of the company's largest and most volatile expenses, causing unit costs to rise sharply and potentially forcing management to cut capacity or delay growth plans.
- Market Risk Reevaluation: Investors are reassessing macro risks, as prolonged high oil prices could dampen consumer spending and corporate travel budgets, threatening passenger demand just as airlines strive to maintain pricing power, putting AAL under pressure.
- Technical Indicators Show Weakness: AAL is trading below its short-term moving averages, with a 12-month performance decline of 15.44%, indicating a longer-term bearish trend; the RSI at 45.56 suggests a lack of strong momentum, highlighting relative weakness in technical performance.
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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: 14.100
Low
11.00
Averages
17.93
High
22.00
Current: 14.100
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.
American Airlines Stock Drops Amid Rising Oil Prices
- Oil Price Impact: American Airlines shares fell 4.61% to $13.45 as crude oil prices approached six-month highs due to escalating tensions in the Middle East, reflecting market concerns over the airline's profitability.
- Cost Pressure Intensifies: Rising crude prices lead to increased jet fuel costs, one of the company's largest and most volatile expenses, causing unit costs to rise sharply and potentially forcing management to cut capacity or delay growth plans.
- Market Risk Reevaluation: Investors are reassessing macro risks, as prolonged high oil prices could dampen consumer spending and corporate travel budgets, threatening passenger demand just as airlines strive to maintain pricing power, putting AAL under pressure.
- Technical Indicators Show Weakness: AAL is trading below its short-term moving averages, with a 12-month performance decline of 15.44%, indicating a longer-term bearish trend; the RSI at 45.56 suggests a lack of strong momentum, highlighting relative weakness in technical performance.
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- Increased Security: Utilizing Mica's patented credential-less tokenization technology, the solution eliminates the risks associated with stored credentials, reducing the likelihood of payment fraud and account takeover attacks, ensuring secure and flexible transaction experiences.
- Multi-Channel Support: The new system supports a wide range of payment forms, including stablecoins and account-to-account transfers, enabling merchants to seamlessly integrate online, in-app, and in-person payments on the UATP platform, addressing diverse customer needs and driving payment innovation.
- Market Demand Response: As the demand for payment optimization grows in the retail and travel sectors, UATP's network-level solution helps merchants modernize their payment infrastructure while maintaining existing acquiring, gateway, and settlement relationships, thereby enhancing their competitive position in the market.
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- Walmart's Earnings Outlook: Walmart's full-year earnings guidance of $2.75 to $2.95 falls short of the $2.96 consensus, indicating challenges in resetting market expectations despite food inflation at just 1%, while authorizing a $30 billion stock buyback program to support its stock price.
- Boeing Order Growth: Boeing secured nearly 100 jet orders from three Vietnamese airlines, indicating a recovery in its backlog, and as CEO Kelly Ortberg's turnaround progresses, a breakout moment for earnings is anticipated, prompting investors to position themselves ahead of this potential growth.
- Deere's Profit Forecast Upgrade: Deere raised its 2026 profit forecast to between $4.5 billion and $5 billion, surpassing the FactSet consensus of $4.38 billion, reflecting a recovery in its construction and small agriculture segments, which led to a 6% increase in its stock price.
- eBay's Strong Performance: eBay reported a blowout quarter with a strong first-quarter outlook, resulting in a 6% stock increase, and announced the acquisition of secondhand fashion app Depop for $1.2 billion, showcasing the company's resurgence in the marketplace.
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Walmart's Guidance Falls Short of Expectations
- Guidance Miss: Walmart's latest earnings report projects adjusted EPS for the fiscal year between $2.75 and $2.85, falling short of Wall Street's $2.96 forecast, resulting in a premarket stock drop of over 2%.
- Challenges Under New CEO: With John Furner taking the helm amid intensifying market competition, investor focus on his strategic direction is increasing, which could impact stock performance.
- Market Performance Review: Despite a recent stock increase of over 21% and nearly 175% over the past five years, the lowered guidance may raise concerns about Walmart's future growth potential among investors.
- Industry Dynamics Impact: On the same day as Walmart's report, Wayfair posted its first annual sales gain, while Etsy's stock rose after beating earnings expectations, indicating a potential pressure on Walmart from the recovering retail sector.
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United Airlines Overhauls MileagePlus Program to Reward Credit Card Holders
- Mileage Reward Changes: United Airlines is significantly revamping its MileagePlus program, where credit card holders will earn 6 miles per dollar spent compared to 3 miles for non-cardholders, fundamentally altering the mileage accumulation strategy to incentivize credit card applications.
- Redemption Rate Discounts: Cardholders will enjoy at least a 10% discount on award flights, for instance, an economy ticket that costs 15,000 miles will now only require 13,500 miles, enhancing perceived value for cardholders and driving credit card sign-ups.
- Elite Member Benefits: Cardholders with elite status will receive deeper discounts, such as a long-haul business class seat priced at 200,000 miles being reduced to 170,000 miles, which strengthens loyalty among high-end customers while increasing accessibility to premium seats.
- Basic Economy Policy: Travelers without a credit card will not earn miles on basic economy fares, although elite members retain this benefit, potentially pushing some customers to apply for credit cards to maintain their mileage accumulation capabilities.
See More
Walmart's Guidance Falls Short of Expectations, Shares Drop
- Guidance Miss: Walmart's latest earnings report projects adjusted earnings per share for the fiscal year between $2.75 and $2.85, falling short of Wall Street's $2.96 forecast, resulting in a premarket share drop of over 2%.
- Leadership Transition Challenges: With new CEO John Furner recently taking the helm, investor focus intensifies on the company's future performance, particularly given Walmart's stock has risen over 21% in the past year.
- Market Reaction and Competitive Pressure: Despite Walmart's market cap surpassing $1 trillion earlier this month, investor confidence in future growth is challenged amid increasing competition in the retail sector.
- Other Retail Updates: In contrast, Wayfair reported its first annual sales gain since 2020, while Etsy's shares surged after beating Wall Street's earnings expectations, highlighting the varied performance across the retail landscape.
See More
American Airlines Stock Drops Amid Rising Oil Prices
- Oil Price Impact: American Airlines shares fell 4.61% to $13.45 as crude oil prices approached six-month highs due to escalating tensions in the Middle East, reflecting market concerns over the airline's profitability.
- Cost Pressure Intensifies: Rising crude prices lead to increased jet fuel costs, one of the company's largest and most volatile expenses, causing unit costs to rise sharply and potentially forcing management to cut capacity or delay growth plans.
- Market Risk Reevaluation: Investors are reassessing macro risks, as prolonged high oil prices could dampen consumer spending and corporate travel budgets, threatening passenger demand just as airlines strive to maintain pricing power, putting AAL under pressure.
- Technical Indicators Show Weakness: AAL is trading below its short-term moving averages, with a 12-month performance decline of 15.44%, indicating a longer-term bearish trend; the RSI at 45.56 suggests a lack of strong momentum, highlighting relative weakness in technical performance.
See More
UATP Partners with Mica to Launch Multi-Tender Payment Solution
- Enhanced Payment Flexibility: The multi-tender payment solution launched by UATP in partnership with Mica allows merchants to intelligently allocate various payment types within a single transaction, significantly improving payment flexibility and streamlining settlement processes, thereby enhancing operational efficiency.
- Increased Security: Utilizing Mica's patented credential-less tokenization technology, the solution eliminates the risks associated with stored credentials, reducing the likelihood of payment fraud and account takeover attacks, ensuring secure and flexible transaction experiences.
- Multi-Channel Support: The new system supports a wide range of payment forms, including stablecoins and account-to-account transfers, enabling merchants to seamlessly integrate online, in-app, and in-person payments on the UATP platform, addressing diverse customer needs and driving payment innovation.
- Market Demand Response: As the demand for payment optimization grows in the retail and travel sectors, UATP's network-level solution helps merchants modernize their payment infrastructure while maintaining existing acquiring, gateway, and settlement relationships, thereby enhancing their competitive position in the market.
See More
Walmart's Disappointing Earnings Outlook Raises Concerns
- Walmart's Earnings Outlook: Walmart's full-year earnings guidance of $2.75 to $2.95 falls short of the $2.96 consensus, indicating challenges in resetting market expectations despite food inflation at just 1%, while authorizing a $30 billion stock buyback program to support its stock price.
- Boeing Order Growth: Boeing secured nearly 100 jet orders from three Vietnamese airlines, indicating a recovery in its backlog, and as CEO Kelly Ortberg's turnaround progresses, a breakout moment for earnings is anticipated, prompting investors to position themselves ahead of this potential growth.
- Deere's Profit Forecast Upgrade: Deere raised its 2026 profit forecast to between $4.5 billion and $5 billion, surpassing the FactSet consensus of $4.38 billion, reflecting a recovery in its construction and small agriculture segments, which led to a 6% increase in its stock price.
- eBay's Strong Performance: eBay reported a blowout quarter with a strong first-quarter outlook, resulting in a 6% stock increase, and announced the acquisition of secondhand fashion app Depop for $1.2 billion, showcasing the company's resurgence in the marketplace.
See More
Walmart's Guidance Falls Short of Expectations
- Guidance Miss: Walmart's latest earnings report projects adjusted EPS for the fiscal year between $2.75 and $2.85, falling short of Wall Street's $2.96 forecast, resulting in a premarket stock drop of over 2%.
- Challenges Under New CEO: With John Furner taking the helm amid intensifying market competition, investor focus on his strategic direction is increasing, which could impact stock performance.
- Market Performance Review: Despite a recent stock increase of over 21% and nearly 175% over the past five years, the lowered guidance may raise concerns about Walmart's future growth potential among investors.
- Industry Dynamics Impact: On the same day as Walmart's report, Wayfair posted its first annual sales gain, while Etsy's stock rose after beating earnings expectations, indicating a potential pressure on Walmart from the recovering retail sector.
See More
United Airlines Overhauls MileagePlus Program to Reward Credit Card Holders
- Mileage Reward Changes: United Airlines is significantly revamping its MileagePlus program, where credit card holders will earn 6 miles per dollar spent compared to 3 miles for non-cardholders, fundamentally altering the mileage accumulation strategy to incentivize credit card applications.
- Redemption Rate Discounts: Cardholders will enjoy at least a 10% discount on award flights, for instance, an economy ticket that costs 15,000 miles will now only require 13,500 miles, enhancing perceived value for cardholders and driving credit card sign-ups.
- Elite Member Benefits: Cardholders with elite status will receive deeper discounts, such as a long-haul business class seat priced at 200,000 miles being reduced to 170,000 miles, which strengthens loyalty among high-end customers while increasing accessibility to premium seats.
- Basic Economy Policy: Travelers without a credit card will not earn miles on basic economy fares, although elite members retain this benefit, potentially pushing some customers to apply for credit cards to maintain their mileage accumulation capabilities.
See More
Walmart's Guidance Falls Short of Expectations, Shares Drop
- Guidance Miss: Walmart's latest earnings report projects adjusted earnings per share for the fiscal year between $2.75 and $2.85, falling short of Wall Street's $2.96 forecast, resulting in a premarket share drop of over 2%.
- Leadership Transition Challenges: With new CEO John Furner recently taking the helm, investor focus intensifies on the company's future performance, particularly given Walmart's stock has risen over 21% in the past year.
- Market Reaction and Competitive Pressure: Despite Walmart's market cap surpassing $1 trillion earlier this month, investor confidence in future growth is challenged amid increasing competition in the retail sector.
- Other Retail Updates: In contrast, Wayfair reported its first annual sales gain since 2020, while Etsy's shares surged after beating Wall Street's earnings expectations, highlighting the varied performance across the retail landscape.
See More
