Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  American Airlines Group Inc.    AAL

AMERICAN AIRLINES GROUP INC.

(AAL)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Frontier Airlines private equity owner sees good buys in industry turmoil

share with twitter share with LinkedIn share with facebook
share via e-mail
03/20/2020 | 05:03am EDT
A Frontier Airlines Airbus A320neo plane departs from O'Hare International Airport in Chicago

Airlines hit hard by the travel restrictions imposed as a result of the coronavirus pandemic may soon present buying opportunities for investors, the co-founder of the buyout firm that owns budget carrier Frontier Airlines said in an interview.

The NYSE Arca Airline Index has lost two-thirds of its value in the past four weeks, more than double the 30% drop in the S&P 500 Index, as investors fret about the impact of airlines grounding flights and placing thousands of workers on unpaid leave as air travel is sharply curtailed across the globe to try to stem the coronavirus outbreak.

"My personal point of view is that they're going to be some really good buys on publicly traded shares of airlines in Europe and the U.S.," Bill Franke, managing member of private equity firm Indigo Partners LLC, said in the interview this week.

"Inevitably, airlines will come back as the economy revives and as the coronavirus issue abates."

Franke is not the first investor to spot bargains in the airline sector. Warren Buffett's Berkshire Hathaway Inc increased its stake in Delta Airlines Inc by $45 million earlier this month as its shares slumped, bringing its stake to 11%. Berkshire was already Delta's top shareholder.

Berkshire also owns similar-sized stakes in American Airlines Group Inc , United Airlines Holdings Inc, and Southwest Airlines Co.

Indigo Partners also owns major stakes in Santiago, Chile-based JetSmart and Hungarian Wizz Air Holdings Plc. Franke said the industry "desperately needs" some form of government support and that he was confident a deal would be reached.

While U.S. President Donald Trump's administration has discussed the possibility of providing financial aid to the airlines, it has so far resisted offering grants, as the industry would like.

A Republican proposal introduced in the U.S. Senate on Thursday would grant up to $58 billion in secured loans to help passenger and cargo airlines hit by the coronavirus crisis, but would bar cash grants and could result in the government getting equity stakes.

Indigo has spent the past few weeks shoring up the balance sheets of the airlines in its portfolio to make sure they have enough cash, Franke said."We talk on a daily basis about where's your cash. What can we do to reduce operating costs? How can we build cash?? Franke said. "You have to plan for the worst or most extreme outcome."

By Rebecca Spalding

Stocks mentioned in the article
ChangeLast1st jan.
AMERICAN AIRLINES GROUP INC. -4.37% 10.5 Delayed Quote.-63.39%
BERKSHIRE HATHAWAY INC. 0.58% 278640 Delayed Quote.-17.95%
DJ INDUSTRIAL -0.07% 25383.11 Delayed Quote.-11.00%
LETS HOLDINGS GROUP CO., LTD. 4.01% 12.45 End-of-day quote.106.13%
NASDAQ 100 1.47% 9555.524843 Delayed Quote.9.42%
NASDAQ COMP. 1.29% 9489.872484 Delayed Quote.5.77%
NEXT -4.29% 4864 Delayed Quote.-30.69%
S&P 500 0.48% 3044.31 Delayed Quote.-5.77%
UNITED AIRLINES HOLDINGS, INC. -2.94% 28.04 Delayed Quote.-68.17%
WIZZ AIR HOLDINGS PLC 0.92% 3280 Delayed Quote.-15.79%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on AMERICAN AIRLINES GROUP IN
05/30Lufthansa accepts tweaked demands by Brussels over state bailout
RE
05/29TWITTER, GENERAL ELECTRIC, WALT DISN : Stocks That Defined the Week
DJ
05/29AMERICAN AIRLINES : Helps Provide Relief to the Unsheltered in Philadelphia; Don..
AQ
05/29AMERICAN AIRLINES : Providing More Flexibility for Customers in June
AQ
05/28U.S. major airlines roll out more options to avoid staff layoffs
RE
05/28Consumer Cos Down As Airline Rebound Optimism Fades -- Consumer Roundup
DJ
05/28Easing Unemployment Claims Show Slower Pace of Coronavirus-Related Layoffs --..
DJ
05/28Dollar Tree, Semtech rise; American Airlines, HP fall
AQ
05/28Easing Unemployment Claims Show Slower Pace of Coronavirus-Related Layoffs
DJ
05/28NEWS HIGHLIGHTS : Top Company News of the Day
DJ
More news
Financials (USD)
Sales 2020 21 168 M - -
Net income 2020 -7 262 M - -
Net Debt 2020 29 663 M - -
P/E ratio 2020 -0,63x
Yield 2020 1,48%
Capitalization 4 440 M 4 440 M -
EV / Sales 2019
EV / Sales 2020 1,61x
Nbr of Employees 131 500
Free-Float 98,8%
Chart AMERICAN AIRLINES GROUP INC.
Duration : Period :
American Airlines Group Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends AMERICAN AIRLINES GROUP IN
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 19
Average target price 11,23 $
Last Close Price 10,50 $
Spread / Highest target 157%
Spread / Average Target 6,96%
Spread / Lowest Target -90,5%
EPS Revisions
Managers
NameTitle
William Douglas Parker Chairman & Chief Executive Officer
Robert D. Isom President
David G. Seymour Senior Vice President-Operations
Derek J. Kerr Chief Financial & Accounting Officer, Executive VP
Maya Leibman Chief Information Officer & Executive VP
Sector and Competitors
1st jan.Capitalization (M$)
AMERICAN AIRLINES GROUP INC.-63.39%4 440
SOUTHWEST AIRLINES-40.53%18 919
JUNEYAO AIRLINES CO., LTD-39.13%2 515
ALLEGIANT TRAVEL COMPANY-38.78%1 695
CHINA EXPRESS AIRLINES CO.,LTD8.78%1 115
PEGASUS HAVA TASIMACILIGI AS--.--%900