American Airlines (AAL) expects $12 billion in assistance from the CARES act
American Airlines Group (AAL) currently trades at $12.74 and has grown by 4% in the past 24 hours. The airline expects $12 billion of the total $50 billion in assistance allocated to airlines under the CARES Act. The act was passed by Congress last week and sets out to provide relief for the coronavirus hit economy, reported CNBC. American has reduced its flight schedule by approximately 60% for April and reduce it by 80% for May in “light of the record low demand,” according to a video statement made by Parker to employees.
Based on this information, investorsQ rates this stock 5 out of 10. We give it this rating because Federal funding for airlines under the CARES Act is predicated on airlines giving the government equity stakes, and meeting requirements such as keeping employees on the payroll while maintaining certain air routes. The high forecast for American Airlines Group is $55.00 and the low is $5.00. Notably, the company’s market cap is $5.43 billion with a 52 week high of $35.24 and a 52 week low of $10.01.