Imperial Capital Maintains Outperform On American Airlines Following 4Q14 Results

In a research report sent to investors today, Imperial Capital analyst Bob Mcadoo maintained an Outperform rating on American Airlines Group (NASDAQ:AAL) with a $92 price target, following the company’s fourth-quarter financial results which were released yesterday.

Mcadoo noted, “While competition in some domestic markets is likely to pressure unit revenue trends early in the year, we suspect, that in coming months, these issues will pass as promotional fares return to more normalized levels. More than offsetting any RASM pressure are substantially lower jet fuel costs, of which we expect American to fully participate in, given its no hedging policy. Much of the earnings impact of this decline has yet to be included in the current 2015 consensus estimates. The company should pass a substantial portion of these cost savings on to investors in the way of share repurchases and the retirement of high interest debt, we believe.”

American Airlines Group Inc., through its subsidiaries, operates in the airline industry. As of October 22, 2014, it operated an average of approximately 6,700 flights per day to approximately 339 destinations in 54 countries.

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