American Airlines Group (AAL - Free Report) has extended the grounding period of its Boeing 737 MAX jets through Apr 7, 2020, as talks pertaining to the approval for the MAX aircraft’s return to service continue between Boeing and the Federal Aviation Administration (FAA). Pointing at several technicalities that need to be addressed, the FAA hinted at the completion of the process in 2020.
Following the extension of the MAX grounding period, American Airlines is expected to cancel approximately 140 flights per day through Apr 6, 2020. The carrier, which has 24 Boeing 737 MAX jets in its fleet, previously suspended the MAX flights through Mar 4, 2020. In October, the airline stated that its 2019 pre-tax income is likely to be hurt by approximately $540 million due to the flight cancellations from the groundings. Reduced capacity as a result of the groundings is weighing on the company’s costs.
On Dec 22, American Airlines plans to provide a flight schedule update for passengers booked on MAX flights through April 6.
Zacks Rank & Key Picks
American Airlines carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are Allegiant Travel Company (ALGT - Free Report) , Ryanair Holdings plc (RYAAY - Free Report) and Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS - Free Report) . While Allegiant and Ryanair sport a Zacks Rank #1 (Strong Buy), Controladora Vuela carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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American Airlines Group (AAL - Free Report) has extended the grounding period of its Boeing 737 MAX jets through Apr 7, 2020, as talks pertaining to the approval for the MAX aircraft’s return to service continue between Boeing and the Federal Aviation Administration (FAA). Pointing at several technicalities that need to be addressed, the FAA hinted at the completion of the process in 2020.
Following the extension of the MAX grounding period, American Airlines is expected to cancel approximately 140 flights per day through Apr 6, 2020. The carrier, which has 24 Boeing 737 MAX jets in its fleet, previously suspended the MAX flights through Mar 4, 2020. In October, the airline stated that its 2019 pre-tax income is likely to be hurt by approximately $540 million due to the flight cancellations from the groundings. Reduced capacity as a result of the groundings is weighing on the company’s costs.
On Dec 22, American Airlines plans to provide a flight schedule update for passengers booked on MAX flights through April 6.
Zacks Rank & Key Picks
American Airlines carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are Allegiant Travel Company (ALGT - Free Report) , Ryanair Holdings plc (RYAAY - Free Report) and Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS - Free Report) . While Allegiant and Ryanair sport a Zacks Rank #1 (Strong Buy), Controladora Vuela carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Allegiant, Ryanair and Controladora Vuela have rallied more than 73%, 22% and 99%, respectively, so far this year.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q3 2019, while the S&P 500 gained +39.6%, five of our strategies returned +51.8%, +57.5%, +96.9%, +119.0%, and even +158.9%.
This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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