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American Airlines Stock Price Edges Higher with Q3 Anticipation

Nigel Firth
Nigel Frith trader
Updated 21 Oct 2021

Investors in American Airlines (NASDAQ: AAL) appear eager today, with bulls waiting for the FY Q3 earnings report due tomorrow. Expecting resounding growth in the endeavor to claw back pre-covid levels of travel, AAL analysts have put forward some promising predictions.

Given the indiscriminate downfall of the travel industry in the last one to two years, it isn’t surprising that investors are waiting eagerly in the aisles for the inevitable bounceback. Thanks to the vaccine rollout, American Airlines has managed to rebuild its foundations once again – but at the moment, not a lot more. Airlines across America are bolstering their growth plans in a move to bounce back stronger than ever – Delta airlines have recently announced new flight paths.

Following analyst expectations, the company is expected to report a seventh straight quarter of losses, yet this quarter is expected to be the smallest loss by a significant amount. Further interest is sparked by Q3 revenue details, which is expected to rise 184.8% – a distinct comparison to sunken pandemic levels. Annual revenue is also expected to increase 72.5% as opposed to a 60% loss last year. 

Currently, AAL stock is moving predominantly sideways, losing some of its momentum in the early hours of Wednesday’s trading. Currently pushing a daily gain 0.5% – AAL stock is just teetering over the $19.60 level. As travel finds its place again in the journey back to normality, travel companies can expect a huge improvement in fiscal growth; Barclays improved the stock rating for airline stocks as early as April this year- so it’s all eyes on tomorrow’s earnings.

Is Now a Good Time to Invest In American Airlines Shares?

Travel stocks, including AAL shares, have been severely impacted by the coronavirus pandemic and subsequent travel restrictions. Hotels, airlines, cruises, and car rental companies have all been affected, but could now be a good time to buy travel stocks at a discount? Are AAL shares included on our list of the best travel stocks to buy? Here's what our analyst had to say on the issue…

Nigel Firth
Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.