Why Shares of American Airlines Are Descending Today
Shares of American Airlines Group (NASDAQ: AAL) fell more than 7% at the open Monday, before recovering slightly, following a weekend spike in oil prices. The entire airline sector is under pressure on Monday, but American is viewed as more vulnerable to a slowdown because of its relatively weak balance sheet compared to its peers.
Oil prices spiked higher on Monday morning following a weekend attack on a Saudi Arabian oil facility took down more than 5.5 million barrels of production. Saudi officials expect to get at least one-third of that capacity back online quickly, but a full recovery could take weeks, if not months.
American Airlines is stuck on the tarmac. Image source: American Airlines.
Source Fool.com
