American Airlines: Debt Reduction In Progress But No Longer At A Discount To Peers


  • American Airlines’ Q1 results showed a small beat in revenue, but earnings per share missed expectations, and revenue per available seat mile fell.
  • The company continues to deleverage and reduce debt, but it remains the most indebted among major North American airlines.
  • American Airlines faces fierce competition in the airline industry, but its extensive route network and loyalty program provide a competitive edge.
  • American Airlines no longer looks undervalued compared to its North American peers, leading to me assigning a “hold” rating.
American Airlines



I previously covered American Airlines (NASDAQ:AAL) back in September last year where I explained my bullish view on the shares. Since then, the shares have risen 2.5% to $14.33, significantly lagging the wider S&P 500 (

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