American Airlines Record Revenues Failed to Impress Investors
American Airlines (AAL) delivered its Q4 2021 report on Thursday showing that its revenue reached its highest point since the beginning of the pandemic. Nonetheless, the company saw an overall loss in 2021 for the second consecutive year. The airline’s management said that it clearly saw a rise in demand for airline services in 2021, which was partially offset by new spikes of COVID-19.
The airline had a loss of $931 million in the fourth quarter on a revenue of $9.43 billion, which was down from $11.3 billion in sales over the last three months of 2019, before the pandemic. American Airlines’ adjusted per share loss was reported at $1.42 a share, compared with analysts’ estimate of a $1.48 per-share loss. For the first quarter of 2022, American Airlines expects revenue to be up 20% to 22% from the same period in 2019 when it generated $10.6 billion in sales. The company expects that the overall spending, excluding fuel costs, will rise by 15% this quarter, while projected capacity for the first three months is expected to be 8-10% less than it was during the comparable period of 2019. Rising fuel costs and personnel shortage are considered by the company as risks for its further development.
Technically, we may witness a downward trend that started in January 2018. American airlines stocks dropped to the bottom end of $8.25 per share in 2020. The stock price rebounded to $26.04 but dropped back down, failing to perform any significant upside correction to the overall drop from $59.08 to $8.25 per share. This means that stock prices are likely to drop to their lows and even further down.The nearest support level is at $16.15-16.27, or December 2021 lows. If this support is broken through, the next targets could be at $14.50 and within the $12.70-12.75 area.
We may resume that American Airline stocks should be put aside and left out of investors’ long-term portfolios as the company is clearly continuing to suffer from the COVID-19 pandemic and its consequences. The technical picture suggests that bears will continue pressuring stock prices. The time for American stocks is yet to come.
The airline had a loss of $931 million in the fourth quarter on a revenue of $9.43 billion, which was down from $11.3 billion in sales over the last three months of 2019, before the pandemic. American Airlines’ adjusted per share loss was reported at $1.42 a share, compared with analysts’ estimate of a $1.48 per-share loss. For the first quarter of 2022, American Airlines expects revenue to be up 20% to 22% from the same period in 2019 when it generated $10.6 billion in sales. The company expects that the overall spending, excluding fuel costs, will rise by 15% this quarter, while projected capacity for the first three months is expected to be 8-10% less than it was during the comparable period of 2019. Rising fuel costs and personnel shortage are considered by the company as risks for its further development.
Technically, we may witness a downward trend that started in January 2018. American airlines stocks dropped to the bottom end of $8.25 per share in 2020. The stock price rebounded to $26.04 but dropped back down, failing to perform any significant upside correction to the overall drop from $59.08 to $8.25 per share. This means that stock prices are likely to drop to their lows and even further down.The nearest support level is at $16.15-16.27, or December 2021 lows. If this support is broken through, the next targets could be at $14.50 and within the $12.70-12.75 area.
We may resume that American Airline stocks should be put aside and left out of investors’ long-term portfolios as the company is clearly continuing to suffer from the COVID-19 pandemic and its consequences. The technical picture suggests that bears will continue pressuring stock prices. The time for American stocks is yet to come.