American Airlines (AAL) has announced plans to change its flights’ schedule for summer due to persistent delays in the delivery of Boeing 787-8 aircraft, which the company considers to be an essential part of its fleet.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
The company expects to receive 10 out of the 13 previously ordered 787 Dreamliner jets. The remaining three are now expected to be delivered in 2023.
The delays have forced American Airlines to temporarily suspend routes between Seattle and London, Los Angeles and Sydney, and Dallas and Santiago, Chile. It will also delay the launch of connectivity between Dallas and Tel Aviv, and lesser flights will run between Miami and São Paulo, Brazil.
The deliveries saw a major roadblock in May 2021 after regulators noted some production flaws in the aircraft such as unacceptable gaps between fuselage panels.
On February 15, The Federal Aviation Administration said that once deliveries resume, it will undertake final inspections of each aircraft and approve them on being assured of Boeing’s quality control and manufacturing standards.
In its regulatory filing, the company said, “American will continue to offer almost 6,000 peak-day departures this summer, more than any other airline. While we are disappointed in the continued delay of our 787-8 deliveries, we remain focused on running a reliable operation on our path to profitability by delivering for our customers the best global network.”
Stock Rating
Barclays analyst Brandon Oglenski maintained a Hold rating on American Airlines and raised the price target to $31.50 from $30.75. The new price target implies 76.3% upside potential from current levels.
Based on 1 Buy, 8 Holds and 3 Sells, the stock has a Hold consensus rating. The average American Airlines price target of $18.67 implies 4.5% upside potential from current levels. Shares have gained 13% over the past year.
Hedge Fund Trading Activity
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in American Airlines is currently Very Negative, as the cumulative change in holdings across all nine hedge funds that were active in the last quarter was a decrease of 2.2 million shares.
Download the TipRanks mobile app now
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Read full Disclaimer & Disclosure
Related News:
Ventas Posts Wider-Than-Expected Q4 Loss
Shake Shack Declines 11% Despite Lower-Than-Expected Q4 Loss
Abbott Recalls Powder Formulas Manufactured in Michigan Unit
