AAL - Is It Time To Sell Your American Airlines Stock?
2024-06-05 07:55:00 ET
Summer is upon us and for many, that means a trip to visit grandma and grandpa, or if you're lucky, lay on a beach sipping mai tais. This seasonal uptick in travel typically makes the second quarter big business for the airline industry, and this year looks to be no different. In fact, the TSA predicts this will be the busiest U.S. travel season on record.
It seems, however, American Airlines (NASDAQ: AAL) didn't get the memo. The carrier announced on May 28 that it is reducing revenue expectations and, ultimately, earnings for the quarter -- from an earnings per share (EPS) range of $1.15 to $1.45 to a range of $1.00 to $1.15. The company also shared that its Chief Commercial Officer, Vasu Raja, would be stepping down. The carrier's stock plummeted roughly 15% on the day after the news broke.
Why is the airline struggling at a time when more Americans than ever are traveling?
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Is It Time To Sell Your American Airlines Stock?