What's Going On With American Airlines (AAL) Shares

American Airlines Group Inc AAL shares are trading lower by 1.18% to $16.68 Tuesday afternoon. Shares of airline stocks are trading lower in sympathy with Alaska Air, which fell after reporting second-quarter earnings and guiding 0-3% topline growth in the third quarter.

The airline industry is susceptible to various external factors, such as fuel costs, economic conditions and travel demand. If Alaska Airlines' guidance reflects a cautious approach to the third quarter, it might signal potential headwinds facing the entire industry.

Investors may interpret this as a sign of weaker demand or increased operational costs, which could negatively impact American Airlines' stock price.

What Happened?

Alaska Air shares declined by 9.22% on Tuesday following the company's less optimistic outlook, projecting 0%-3% topline growth for the third quarter.

In the second quarter of FY23, ALK reported a 7% year-over-year increase in operating revenue, reaching $2.84 billion, surpassing the consensus estimate of $2.77 billion. Passenger revenues also showed improvement, growing by 7% Y/Y to $2.6 billion.

Adjusted EPS for the quarter was $3.00, outperforming the previous year's $2.19 in 2Q22, and exceeding the consensus of $2.70.

Moreover, the company achieved adjusted pre-tax margins of 18.3%, a 250 basis points improvement compared to 2Q19...Read More

According to data from Benzinga Pro, AAL has a 52-week high of $19.08 and a 52-week low of $11.65.