American Airlines Group Inc
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$59.00 | Wlx | Jtsrvdkc |
American's the Biggest Airline but Looks a Lot Like the Industry Average
Business Strategy and Outlook
Before the coronavirus pandemic, much of American Airlines’ story was based on realizing cost efficiencies from its 2013 merger with U.S. Airways and strengthening its hubs to expand margins. While we observed a bump in operating margin to 15.1% in 2015, when the merger was financially consolidated and fuel prices dropped, American saw steady unit cost growth through 2019, when it delivered a 6.7% operating margin. While we expect American can achieve some operating cost improvement in the coming years, we do not expect it to structurally improve its relative position among airlines.