American Airlines GroupAALDON'T BUYMar 14, 2016Stock price when the opinion was issued
As of Jun 08, 2026. Market Open.
Bank of America reports there's an 8% increase in travel vs. 2019 (not 2020 during Covid). This trend will benefit American Airlines and Delta (his favourite airline), especially when international travel returns. True, shares have run up, but he feels there's still plenty of runway left.
It's moved up too much and had to do an equity raise. Doesn't know how much money they're losing. Buy Boeing instead.
An $11 stock, but he prefers LUV because it doesn't lose money and has a better long-term outlook.
WJA-T vs. AAL-Q. On AAL-Q, the industry has consolidated so the airlines have pricing power. 10 years ago all these airlines were losing money. There are ultra low cost carriers coming in and undercutting the others and there is a bit of a price war going on. This is not happening in Canada. He would stay out of the US. WJA-T is safer than AC-T.