American Airlines Can't Catch A Break

Mar. 08, 2022 2:42 AM ETAmerican Airlines Group Inc. (AAL)149 Comments

Summary

  • American Airlines is hit by fears over higher oil prices.
  • The airline spent $9.4 billion on fuel costs back in 2019 when average jet costs were below $2 per gallon.
  • The stock is a buy on this dip to the $12s as the impact of fuel is vastly overstated due to revenue matching fuel costs after an adjustment period.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
American Airlines

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After surviving Covid-19 lockdowns, American Airlines Group (NASDAQ:AAL) and the airline sector in general were set up for a full recovery of passenger traffic this summer. The Russian invasion of Ukraine and the ensuing surging oil prices are set

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Stone Fox Capital Advisors, LLC is a registered investment advisor founded in 2010. Mark Holder graduated from the University of Tulsa with a double major in accounting & finance. Mark has his Series 65 and is also a CPA.


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Disclosure: I/we have a beneficial long position in the shares of AAL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.

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