2024-07-13 10:00:00 ET
Summary
- Delta Air Lines missed estimates, causing American Airlines Group Inc. stock to slip, but the airline expects improved unit revenue trends in August and beyond.
- Despite fuel cost challenges and capacity issues, legacy airlines remain highly profitable.
- American Airlines stock is undervalued, with the stock valued as if bankruptcy is around the corner, yet the more likely outcome is stock buybacks.
The airline sector continues to produce massive profits, while the stocks are constantly sold off on any slightly negative news. American Airlines Group Inc. ( AAL ) has somehow fallen back to $10 following Delta Air Lines, Inc. ( DAL ) reporting a quarter where profits were at near record levels, but the market didn't like the outlook. My investment thesis remains ultra-Bullish on American Airlines stock, though the stock and sector continue to struggle to obtain fair valuations by Wall St....
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American Airlines: Don't Fret Delta's Warning