American Airlines shares fall for a second straight session on Thursday, fourth-quarter profit shrinks as operating expenses soar

January 26, 2018 11:22 am

American Airlines Group’s (AAL) fourth-quarter profit was reported to have shrunk 11% year-on-year, as the company’s operating expenses rose due to labor and fuel costs.

American Airlines shares closed lower for a second consecutive trading session on Thursday. The stock went down 3.18% ($1.74) to $53.05, after touching an intraday low at $52.25, or a price level not seen since January 9th ($52.01).

In the week ended on January 21st the shares of the transportation company lost 0.70% of their market value compared to a week ago, which marked the second drop out of ten weeks.

The stock has pared its advance to 1.96% so far during the current month, following a 3.05% surge in December. The latter has been a second consecutive month of gains.

For the entire past year, the shares of the NASDAQ-listed carrier rose 11.44% following another 10.25% surge in 2016.

American Airlines said its net income had decreased to $258 million ($0.54 per share) during the latest quarter from $289 million ($0.56 per share) during the same period a year ago.

On the other hand, the carrier’s earnings per share, which exclude special items, were reported at $0.95 per share during the past quarter. In comparison, analysts on average had expected earnings of $0.92 per share.

Meanwhile, the airline’s operating expenses were reported to have surged 10% year-on-year to $9.9 billion during the fourth quarter, due to a 7% rise in wages and benefits as well as a 23.5% increase in consolidated fuel expenditures.

Last year pilots and flight attendants at American Airlines were offered a mid-contract pay raise, which is about to cost $350 million per year during both 2018 and 2019.

The company also reiterated its total system capacity forecast for 2018, as it expects a 2.5% growth compared to the preceding year.

According to CNN Money, the 19 analysts, offering 12-month forecasts regarding American Airlines Group’s stock price, have a median target of $60.00, with a high estimate of $105.00 and a low estimate of $49.00. The median estimate is a 13.10% surge compared to the closing price of $53.05 on January 25th.

The same media also reported that 10 out of 20 surveyed investment analysts had rated American Airlines Group’s stock as “Buy”, while 8 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the American Airlines stock are presented as follows:

R1 – $53.26
R2 – $53.46
R3 (Range Resistance – Sell) – $53.67
R4 (Long Breakout) – $54.29
R5 (Breakout Target 1) – $55.01
R6 (Breakout Target 2) – $55.33

S1 – $52.84
S2 – $52.64
S3 (Range Support – Buy) – $52.43
S4 (Short Breakout) – $51.81
S5 (Breakout Target 1) – $51.09
S6 (Breakout Target 2) – $50.77

By using the traditional method of calculation, the weekly levels of importance for American Airlines Group (AAL) are presented as follows:

Central Pivot Point – $58.22
R1 – $58.92
R2 – $59.77
R3 – $60.47
R4 – $61.16

S1 – $57.37
S2 – $56.67
S3 – $55.82
S4 – $54.96

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