Why American Airlines Shares Took OffThe company said it believed 74% more flights will take place in July than in June.
Vasu Raja, American's senior vice president of network strategy, said the busiest day in July would bring in almost twice as many passengers than the busiest day in June, Bloomberg reported.
Yet the airline still has a long way to go: the July estimates only represent 40% of its total capacity.
Why It's Important
The coronavirus pandemic sent American's revenue down 90%, and the stock was down 67%. The airline is still far from where it once was. International scheduled flights are 20% of last year's volume, and Moody's Investors Service estimates that the industry will not see a full recovery before 2023.
What's Next
American is starting to prepare for increased flight capacity by bringing back some of the 450 planes that it has parked.
Revenue is still down approximately 80%.
"We have a long road ahead," CEO Doug Parker said in a CNBC interview. "But it's coming back."
The stock ended Thursday's session 41.25% higher at $16.74.
www.benzinga.com
AALD trade ideas
AAL is drunkPlanes are 80% full because the number of flights is minimal at best. Any meaningful travel rebound is going to take some time, to get to the level of travel accessibility before the virus might even take years.
Quite frankly the balance sheet is a disaster and their asset collateral is a bunch of depreciating planes, but who would even buy them if there is people aren't even traveling.
As of writing this, AAL is the third most popular stock on Robinhood, which in of itself tells me to short it.
As a sidenote, i really wat AAL to do well, my mother retired from American Airlines and I'd like it to stick around forever. Emotions aside, it is still a short for me until at least september
New trend !I assume American Airlines stock finish end of wave cycle II. So this stock now in new trend , go up !
DISCLAIMERS :
* My EW labelling perhaps different with other EW traders.
** This analysis however is subject to change anytime ( with or without notice by me ).
*** Every result trade of you, I am not gonna responsible for it. I just sharing this analysis for learning purpose only, especially for people who really want to know about Elliot Wave technique.