American Airlines Stock Price Rallies After Q2 2021 Earnings Release

American Airlines Group (AAL) delivered better than expected results for Q2 2021. It made a net profit of $19 million, or $0.03 per diluted share.

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American Airlines' stock price rallied in the aftermath of its Q2 2021 earnings release. The company has beaten the market expectations, delivering better results for the quarter.

As such, the stock price is up over 40% YTD, despite ongoing challenges posed by the COVID-19 pandemic. The airline industry was one of the most affected by the pandemic, but investors kept buying the lows, especially after the announcement of effective vaccines.

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Details of American Airline Q2 2021 Earnings

The company reported revenues of $7.5 billion for the second quarter, almost double compared to the first quarter of the year. The explanation comes from the reopening of the US economy and the pick-up in travelling as the United States ran a successful vaccination campaign.

It even made a profit of $0.03 per diluted share in the second quarter. Also, American Airlines revealed plans to pay down approximately $15 billion of debt by 2025.

Investors were particularly impressed by the record liquidity of $21.3 billion and by the acceleration in the deleveraging process as the company started to pay down a big chunk of its debt.

As the global economy reopens after the COVID-19 lockdowns and travel restrictions, challenges ahead do remain. Fuel shortages are the next industry challenge. As for the forward guidance, American Airlines delivered an aggressive outlook and it pushes for international travel.

What Do Analysts Say about American Airlines Stock Price?

Analysts remain cautious about American Airlines stock price, despite better than expected earnings. Out of the 28 analysts that cover the company, 13 have issued sell ratings, 7 have issued neutral ratings and only 8 buy ratings.

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The most recent changes were bullish for the stock price. American Airlines was upgraded to hold by Citigroup and Berenberg and to buy by Seaport Global Securities.