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American Airlines (AAL) might be a short-term time bomb

  • American Airlines AAL is scheduled to report first-quarter 2020 results on Apr 30, before the market open.
  • The company’s bottom line surpassed estimates in three of the last four quarters with in-line earnings in one.
  • American Airlines’ first-quarter performance is likely to have taken a major hit. Even though passenger traffic might have been strong in January and February.
  • As the company adapts to the new business environment, the extremely low-demand scenario with many countries on lockdown and wide-spread travel restrictions in place, this Fort Worth, TX-based carrier are trimming its capacity, inducing cancellation of multiple flights.
  • The company fears that after restrictions are released and people are allowed to fly internationally again, many may be scared to do so with fears of COVID-19 lingering.
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About American Airlines

American Airlines Group, Inc. is a holding company, which engages in the operation of a network carrier through its principal wholly-owned mainline operating subsidiary, American. The firm offers air transportation for passengers and cargo. It operates through the following geographical segments: Department of Transportation Domestic; Department of Transportation Latin America; Department of Transportation Atlantic; and Department of Transportation Pacific. The company was founded on December 9, 2013 and is headquartered in Fort Worth, TX.

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