American Airlines shares close lower on Monday, air carrier extends 737 MAX flight cancellations through September 3rd

June 11, 2019 6:47 am

American Airlines Group (AAL) said during the weekend that it would extend cancellations of some 115 daily flights through September 3rd, as Boeing’s 737 MAX still remains affected by the grounding order. The air carrier had previously announced that flights would be canceled until August 19th.

American Airlines shares closed lower for the ninth time in the past fourteen trading sessions on NASDAQ on Monday. The stock went down 0.52% ($0.16) to $30.76, after touching an intraday high at $31.72, or a price level not seen since May 17th ($32.36).

Shares of American Airlines Group have retreated 4.20% so far in 2019 compared with a 15.15% gain for the benchmark index, S&P 500 (SPX).

In 2018, American Airlines’ stock went down 38.29%, thus, it again underperformed the S&P 500, which registered a 6.24% loss.

Boeing announced during the past weekend that it was still working with “global regulators to provide them the information they need to certify the MAX update and related training and education material and safely return the fleet to service.”

The US plane maker said it was “partnering with our airline customers to maintain their planes in storage and will provide ‘entry into service’ type support once they are cleared to resume commercial operation.”

In May, Dan Elwell, the Federal Aviation Administration’s (FAA) Acting Administrator, said that no specific timetable for lifting the ban on the 737 MAX was available.

“If you said October I wouldn’t even say that, only because we haven’t finished determining exactly what the training requirements will be,” Elwell told reporters.

“If it takes a year to find everything we need to give us the confidence to lift the (grounding) order so be it,” he added.

According to CNN Money, the 19 analysts, offering 12-month forecasts regarding American Airlines Group’s stock price, have a median target of $41.00, with a high estimate of $55.00 and a low estimate of $26.00. The median estimate represents a 33.29% upside compared to the closing price of $30.76 on June 10th.

The same media also reported that 12 out of 22 surveyed investment analysts had rated American Airlines Group’s stock as “Buy”, while 6 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Weekly Pivot Levels

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

Central Pivot Point – $29.70
R1 – $32.38
R2 – $33.84
R3 – $36.52
R4 – $39.20

S1 – $28.24
S2 – $25.56
S3 – $24.10
S4 – $22.64

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