Why Shares of American Airlines Are Falling Today
Airline shares are mostly higher on Friday, with American Airlines Group (NASDAQ: AAL) as a notable exception. On a day when most airlines are gaining altitude, American dropped more than 5% midday as investors continue to digest earnings and look ahead to a bleak future.
On Thursday, American reported a third-quarter loss as expected, but revenue came in higher than expected. The airline also had more than $13.6 billion in liquidity at quarter's end, and has boosted that total in the weeks since by tapping the CARES Act-authorized U.S. Treasury lending program.
Airlines have struggled due to the coronavirus pandemic, and with travel expected to take years to return, American and other carriers are cutting costs, strengthening liquidity positions, and preparing to ride out the storm.
Source Fool.com
