As the world economy recovers from pandemic blues, rising transportation demand is putting pressure on crude oil inventories. Thus, high benchmark prices are expected to weigh on the airline industry’s bottom line for a couple of quarters. In the previous quarter, American Airlines (NASDAQ: AAL) highlighted a strategic plan to reduce $15 billion of long-term debt by the end of 2025. The company plans to achieve this target by utilizing cash from operations. Considering AAL’s pre-Covid operating cash flow figure of $3.8 billion, it requires sizable margin improvement to achieve the deleveraging target in the current high fuel cost and uncertain demand environment. We highlight analyst expectations for Q3 2021 along with quarterly trends in revenues, earnings, and stock price in an interactive dashboard analysis, American Airlines Earnings Preview.
[Updated 10/12/2021] – Is American Airlines
AAL
As new infections decline, travel and entertainment stocks observe an uptick on anticipation of quick demand recovery in the coming months. However, airline stocks have been on a decline in the past week including American Airlines (NASDAQ: AAL) over concerns of rising operational costs majorly due to high benchmark prices. Despite strong domestic travel demand, AAL stock is likely to trade sideways in the coming month as indicated in our interactive dashboard, American Airlines Stock Price Forecast. The company plans to repay debt from excess operating cash in the next few years, but cost…