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American Airlines shares drop to the lowest in more than 6 years amid coronavirus airline rout

The rout in airline stocks continued Tuesday with American hitting a more than six-year low, leading the S&P 500 down as worries persisted about the impact of the coronavirus on travel demand. Shares of U.S. carriers were all off by more than the broader market. ( 기타...

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s2v8377 3
This says a lot about the lack of investor confidence in AA. The airline with the least exposure in Asia and Europe is being hit the hardest. I think American's large amount of debt is catching up with them in a big way. This was a serious enough problem even before the Coronavirus scare.
Part of the issue for AA is likely due to their steadfast adherence to the 737MAX. I would surmise that if they were to cut their losses and exchange some of the undelivered and optioned 737MAX for the A321NEO, they would be a bit more resilient on stick price.
s2v8377 1
You can't just call up Airbus and say give me more planes because I don't like Boeing anymore. As it is Airbus deliveries are far behind schedule and that's not just at AA. It would also have no impact on the lack of investor confidence.

AA management has been using the 737 MAX as an excuse for their bad planning and poor business decisions. The 737 MAX grounding is currently not having anywhere near as much impact financially at American as Doug Parker would like you to think. AA has not retired several 757s as well as some of the original 737s. Yes the older planes cost more to fly, but they are either paid for or leased at a much cheaper rate which cancels out much if not all of the higher operating cost. American also currently has more than enough planes.

The bottom line on why AA stock is doing so bad:

1.) They have too much debt

2.) American's corporate leadership has not presented a sound business plan to investors.

3.) Their operating costs are higher than Delta and United

4.) American has retreated in key markets like New York where Delta and United have grown.
American is not the only airline losing money at present..other domestic/intenational carriers based in the u.s. ,such as united and delta are as well..all of the cruise lines are getting pinched..shareholders are fickle at best,but it was stated today this is the larges drop/selloff in the stockmarket in one day,EVER...we can only hope the corona virus,which by reports is spreading into a real pandemic,will soon be curtailed...the vaccine that trump was speaking about being ready "soon",as reported by this who actually know, will not be ready nor available for at least one year..
aurodoc 1
All airlines are going to be hurt with Coronavirus scare. Who wants to be cooped up in metal tube with 150 other people who are potential carriers of Coronavirus let alone any other illness. Might be some good travel bargains soon.
Not much of a bargain IF one becomes ill with the virus!


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