Sunday, July 5, 2015

American Airlines: Beaten Down Without Merit


  • Airline stocks were beaten down last week on fears of a DOJ probe.
  • The data suggests the probe is without merit, especially considering the PRSAM drop during Q2 for American Airlines.
  • The airline sector remains incredibly beaten down, with American Airlines trading at a PE multiple of only 5.
After an already weak year, airline stocks were beaten down last week by a probe from the Department of Justice, or DOJ. Anybody who owns an airline stock, and especially American Airlines Group (NASDAQ:AAL), is likely flabbergasted heading into the July 4th holiday weekend. The thought that American Airlines is colluding on capacity appears preposterous based on the big battle going on in Dallas between Southwest Airlines (NYSE:LUV) and Virgin America (NASDAQ:VA).

Read the full article at Seeking Alpha.


Disclosure: Long AAL. Please review the disclaimer page for more details.



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