Summary
- American Airlines to benefit from reduced fuel costs and consumption.
- American Airlines won't face income tax payments until 2016, at the current income level.
- The stock is extremely cheap with the above tailwinds helping offset any global slowdown concerns.
Typically people focus on two certainties in life: death and taxes. For an airline like
American Airlines Group (NASDAQ:AAL),
the certainties are fuel and taxes. Fuel accounts for the largest
expense line for airlines. The ability to lower fuel consumption or the
cost per gallon will have a material impact to the bottom line. For
taxes, the airlines are entering a new era of dealing with income taxes
after decades of loses that eliminated the need to pay the government.
Read the
full article at Seeking Alpha.
Disclosure: Long AAL. Please review the disclaimer page for more details.
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