Stock Update (NASDAQ:AAL): American Airlines Group Inc Reports Record March Traffic and Capacity

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

American Airlines Group’s total revenue passenger miles (RPMs) were 19.0 billion, up 3.3 percent versus March 2015. Total capacity was 23.3 billion available seat miles (ASMs), up 3.8 percent versus March 2015. Total passenger load factor was 81.7 percent, down 0.4 percentage points versus March 2015. The Company’s traffic and capacity were both records for the month of March.

The Company expects its first quarter 2016 consolidated passenger revenue per available seat mile (PRASM) to be down approximately 7 to 8 percent year-over-year. In addition, the Company continues to expect its first quarter pretax margin excluding special items to be between 12 and 14 percent, which includes the financial impact of the Company’s 2016 profit sharing plan announced on March 23. For more financial forecasting detail, please refer to the Company’s investor relations update also filed today on SEC Form 8-K.

The following summarizes American Airlines Group traffic results for the month and year-to-date ended March 31, 2016, and 2015, consisting of mainline-operated flights, wholly owned regional subsidiaries and operating results from capacity purchase agreements. (Original Source)

Shares of American Airlines Group Inc closed last Friday at $38.50, up $0.14 or 0.36%. AAL has a 1-year high of $53.47 and a 1-year low of $34.10. The stock’s 50-day moving average is $41.18 and its 200-day moving average is $41.52.

On the ratings front, American Airlines has been the subject of a number of recent research reports. In a report released today, Deutsche Bank analyst Michael Linenberg maintained a Hold rating on AAL, with a price target of $45, which implies an upside of 16.9% from current levels. Separately, on March 29, Stephens Inc’s Jack Atkins initiated coverage with a Hold rating on the stock and has a price target of $43.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Michael Linenberg and Jack Atkins have a total average return of 18.7% and 6.0% respectively. Linenberg has a success rate of 58.2% and is ranked #57 out of 3788 analysts, while Atkins has a success rate of 52.9% and is ranked #1157.

Overall, 3 research analysts have assigned a Hold rating and 6 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 $48.71 which is 26.5% above where the stock closed last Friday.

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. The company was founded on December 9, 2013 and is headquartered in Fort Worth, TX.


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