Company Update (NASDAQ:AAL): American Airlines Group Reports May Traffic

American Airlines Group (NASDAQ:AAL) reported May and year-to-date 2016 traffic results.

American Airlines Group’s total revenue passenger miles (RPMs) were 19.4 billion, up 0.5 percent versus May 2015. Total capacity was 23.7 billion available seat miles (ASMs), up 1.7 percent versus May 2015. Total passenger load factor was 81.9 percent, down 0.9 percentage points versus May 2015.

The Company continues to expect its second quarter 2016 consolidated passenger revenue per available seat mile (PRASM) to be down approximately 6 to 8 percent year-over-year. In addition, the Company continues to expect its second quarter pretax margin excluding special items to be between 14 and 16 percent. (Original Source)

Shares of American Airlines closed yesterday at $32.51, up $0.15 or 0.46%. AAL has a 1-year high of $47.09 and a 1-year low of $30.37. The stock’s 50-day moving average is $33.53 and its 200-day moving average is $38.86.

On the ratings front, American Airlines has been the subject of a number of recent research reports. In a report issued on April 28, Morgan Stanley analyst Rajeev Lalwani upgraded AAL to Buy, with a price target of $46, which implies an upside of 41.5% from current levels. Separately, on April 22, Cowen’s Helane Becker reiterated a Buy rating on the stock and has a price target of $46.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Rajeev Lalwani and Helane Becker have a total average return of -15.4% and 23.4% respectively. Lalwani has a success rate of 21% and is ranked #3750 out of 3903 analysts, while Becker has a success rate of 71% and is ranked #18.

Overall, 3 research analysts have assigned a Hold rating and 7 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $49.75 which is 53.0% above where the stock closed yesterday.

American Airlines Group, Inc. is a holding company whose business activity is the operation of a network carrier through its principal wholly-owned mainline operating subsidiary, American. The company provides air transportation for passengers and cargo. It cargo division provides a range of freight and mail services, with facilities and interline connections available across the globe. 


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