On Monday, the United States lifted a travel ban on international visitors from more than 30 countries after almost 19 months. The move should benefit airlines including American Airlines (NYSE:AAL), which has indicated that its international capacity for November and December would be more than double last year’s levels.
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However, we think the growth in demand from international travelers is priced into American Airlines stock. We value AAL at $16 per share, marking a discount of about 25% from the current market price, due to rising costs and the company’s sizeable debt load.
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