American Airlines Stock Is Sliding: What's Going On?

American Airlines Group Inc AAL shares are trading lower Tuesday after the company increased its average fuel price guidance for the first quarter.

What Happened: American Airlines is presenting at the 2024 JPMorgan Industrials Conference on Tuesday. Ahead of the event, the company announced an updated outlook as it relates to fuel prices in the first quarter.

American Airlines said fuel prices have increased significantly since the company provided guidance in its fourth-quarter earnings report. The company now expects to pay between $2.80 and $2.90 per gallon of jet fuel in the first quarter, versus prior expectations for prices ranging from $2.65 to $2.85 per gallon.

Based on the higher fuel costs, American Airlines said it now anticipates a first-quarter adjusted loss at the low end of its previous guidance for a loss of 15 cents to 35 cents per share. The company reiterated its full-year 2024 guidance.

American Airlines is not due to report earnings until the end of April. Analysts currently expect the company to report a loss of 23 cents per share on revenue of $12.555 billion, according to Benzinga Pro.

See Also: Skyward Signal: American Airlines’ Golden Cross Marks Bullish Trajectory

Is AAL A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like American‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. American Airlines does pay a dividend, which yields 1.22% per year as of the closing price on March 12. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 17.42%, you'll need to buy a share of abrdn Inc Credit Strat by the March 20. Once done, you can expect to receive a nominal payout of $0.1 on March 28.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on American Airlines Gr will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

AAL Price Action: American Airlines shares were down 2.25% at $14.33 at the time of publication, according to Benzinga Pro.

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