Forecast Of The Day: American Airlines Available Seat Miles
What?
American Airlines (NYSE:AAL) Available Seat Miles – which is a measure of an airline’s passenger-carrying capacity – declined from around 285 billion in 2019 to about 143 billion in 2020 although it recovered to about 215 billion in 2021. Trefis expects the metric to rise to over 300 billion by 2023.
Why?
- Which Airlines Stock Will Offer Better Returns – American Or United?
- What To Expect From American Airlines’ Q2?
- Will American Airlines Stock Recover To Its Pre-Inflation-Shock Level?
- Pick Either American Airlines Stock Or Its Peer – Both May Offer Similar Returns
- American Airlines Stock Has Struggled To Outperform The S&P- Here’s Why
- American Airlines Set For Mixed Earnings Performance?
While the metric plummeted in 2020, due to the impact of Covid-19, we expect longer-term growth to be driven by expanding operations and improving demand following the easing of travel restrictions.
So What?
We think the projected recovery is more than priced into AAL stock. We value AAL at about $15 per share, 15% below the current market price.
See Our Complete Analysis For American Airlines
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
| Returns | Feb 2022 MTD [1] |
2022 YTD [1] |
2017-22 Total [2] |
| AAL Return | 9% | -1% | -62% |
| S&P 500 Return | -4% | -9% | 94% |
| Trefis MS Portfolio Return | -2% | -11% | 251% |
[1] Month-to-date and year-to-date as of 2/22/2022
[2] Cumulative total returns since the end of 2016