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On Tuesday investment banking company Jefferies downgraded its rankings on Delta, American Airlines, Southwest Airlines, and Air Canada. This has caused airline stocks to trade significantly lower today with Delta down over 3%, Southwest Airlines down over 5%, and American Airlines down around 2.9%.
Airline stocks slumped Tuesday after Jefferies analysts lowered their ratings for three of the four major U.S. carriers, writing “consumer sentiment continues to disappoint.”
Airline stocks traded lower Tuesday. Concerns are growing about travel demand, with a decline in spending and consumer confidence.
American Airlines Group Inc (NASDAQ:AAL) and Delta Air Lines Inc (NYSE:DAL) stocks are sliding today, after Jefferies downgraded both airline giants to "hold" from "buy" and issued deep price-target cuts.
The latest move is expected to boost AAL's competitive position in the airline industry.
Passenger volumes have rebounded to 2019 levels, but American Airlines has seen a significant decline in stock value and growth prospects. AAL's earnings and revenue have been sporadic, with operating income and EBITDA down in 2024, and guidance for 2025 has been slashed. Economic headwinds, high debt, and lower growth compared to peers make AAL less attractive despite its low valuation.
Consumer spending is the backbone of the U.S. economy, and every year, a meaningful portion of a typical household budget goes towards non-essential items and experiences — such as jewelry, dining out, and entertainment. But a February 2025 survey conducted by the management consulting firm McKinsey found that Americans are more willing to splurge on travel than nearly every other sector. 24/7 Wall St. Key Points: Customer facing industries are often highly competitive, and air travel is no exception — particularly in an era of widespread economic uncertainty. Recent survey data measuring customer satisfaction suggests that some airlines are better positioned to maintain a solid customer base in the coming months than others. Also: Discover the next Nvidia While these findings should have come as welcome news to the air travel industry, many of the biggest airlines in the U.S. are not especially optimistic. In times of economic uncertainty or hardship, non-essential consume
PITTSBURGH, PA — For several years, Edward Bonner frequently wandered the paths of Calvary Cemetery on a quest that began in his youth. Among the markers of the more than 150,000 people interred or entombed in the 200-acre cemetery, he searched for a select few ones and took photos of them. "I grew up in Hazelwood and I used to go to the cemetery a lot," he said. "And as I did, I started wondering about all the famous people buried there." The results of those searches and the historical research that followed have resulted in the recent book, "The Final Resting Place: Calvary Cemetery." Published by Sunberry Press in Mechanicsburg, it tells the frequently fascinating stories of about 50 well-known people for whom Calvary is indeed their final resting place. "From start to finish, it probably took me around four years to complete," said Bonner, 64, of Canonsburg, a retired American Airlines airplane mechanic and an active poet. "Hunting for the graves took some time. They give you th
Despite all of the recent market volatility, three stocks are flashing buy signals from Wall Street analysts, suggesting upside potential in the second quarter. Against a mixed market backdrop, with some sectors showing weakness and others resilience, these companies have attracted attention due to a combination of recent price dips and positive analyst sentiment.
AAL now expects a loss per share of 60-80 cents in the first quarter of 2025 compared with the prior expected loss of 20-40 cents.