Over the past 60 days, the AAL stock has seen the Zacks Consensus Estimate for 2023 earnings being revised 24.3% upward. However, high fuel costs are hurting the bottom line. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Īmerican Airlines is based in Fort Worth, TX. Investors interested in the Zacks Airline industry may consider stocks like American Airlines and United Airlines, both carrying a Zacks Rank #2 (Buy) at present. Zacks Rank & Key PicksĬurrently, both Spirit Airlines and JetBlue carry a Zacks Rank #3 (Hold). Given this back drop, it will be interesting to wait and see the future course of action regarding the deal. airlines like American Airlines ( AAL Quick Quote AAL - Free Report) and United Airlines ( UAL Quick Quote UAL - Free Report). However, JBLU’s management put forward the argument that the takeover of Spirit Airlines would result in a market share of 9% for the former and allow it to better compete with the leading U.S. The USDOT is likely to block the transfer of SAVE’s airline certificate. SAVE and JBLU had also filed an exemption application requesting the USDOT to permit them to operate under common ownership before the requested transfer. We remind investors that both JetBlue and Spirit filed a transfer application with the USDOT asking for permission to combine and operate their international routes under one certificate. Department of Transportation (USDOT) is supporting the lawsuit filed by the Department of Justice. Making matters worse as far as the future of the deal is concerned, the U.S. A merger is looked at as a way aimed at saving costs. airlines are struggling from high labor and fuel costs. The roadblock pertaining to the impending merger comes at a time when the U.S. senator, Elizabeth Warren, "Americans want more choices and lower prices for airline tickets, not another giant merger." JetBlue had plans to remove 10-15% of seats from every Spirit plane, per the complaint. The lawsuit alleges that the $3.8-billion deal, on materialization, will lead to higher fares and reduced number of seats, resulting in an unfavorable scenario for passengers travelling on the flights. The lawsuit has been filed on concerns that the merger, on taking effect, will be anti-competitive. The Department of Justice has sued to block the impending takeover of Spirit Airlines ( SAVE Quick Quote SAVE - Free Report) by JetBlue Airways ( JBLU Quick Quote JBLU - Free Report).
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