With customers resuming travel in large numbers, the last quarter was one of the busiest quarters for American Airlines. The company served 53 million travellers and returned to profitability while surpassing Wall Street expectations on the revenue front. Given the significant run-up in the prices of oil, American Airlines missed out on meeting analyst expectations on earnings. In the quarter, the unit revenue performance of the company in Los Angeles and JFK outperformed the system. The leisure demand has been surpassing the pre-pandemic levels. Enrollments in the loyalty programs of the company continue to be robust. The management is working on adding many new routes to Mexico in Q4. Overall, we provide the stock of American Airlines with a ‘Hold’ rating and a revision in the target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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