Investors are cutting airline stock American Airlines (NASDAQ:AAL) a bit of slack right now, but that slack may not continue much longer, especially with the holiday travel season approaching. Several bits of news emerged that add up to potential trouble, but American Airlines itself is up fractionally in the closing minutes of Friday’s trading session.
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The first bit of trouble came from a mother in Florida, who dropped $150 on American’s “unaccompanied minors” service to send her kids from Missouri to Syracuse, New York, back in July of 2022. With that service, the kids were supposed to get early boarding, access to a lounge specifically for kids, and escorts to connections ahead of a designated adult picking the kids up.
What she apparently got was her kids misplaced for several hours while they were left in a room she describes as “…akin to a jail cell,” but without the benefit of food or water. The issue reportedly took place during a layover in Charlotte, North Carolina.
That’s just for starters. Meanwhile, a couple who had been upgraded to first class by a ticket agent on another American flight was broken up and the lady of the couple was forced to the back of the plane. The reason? A broken seat…which was subsequently taken up by an American Airlines pilot.
And just to top it all off, this comes at a time when American Airlines was spotted offering quarter-million-dollar bonuses to FedEx (NYSE:FDX) and UPS (NYSE:UPS) pilots after the duo cut back on hours and flights. None of this adds up to good news, especially as vast numbers of Americans will be traveling with the Thanksgiving and Christmas holidays afoot.
What is the Target Price of American Airlines?
Turning to Wall Street, analysts have a Hold consensus rating on AAL stock based on three Buys, eight Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAL price target of $15.19 per share implies 28.67% upside potential.
