Back to top

Why American Airlines is Falling on Tuesday

Read MoreHide Full Article

Shares of airline giant American Airlines (AAL - Free Report) sunk over 4% in Tuesday morning trading after it announced it will cut 19,000 jobs in October. The stock climbed back a bit before closing down 2.23%.

Federal aid that protected those jobs during the pandemic is expiring. The original aid package set aside for airline carriers was $25 billion, but airlines and labor unions are urging lawmakers for another $25B in federal help; Congress is still trying to strike a deal on another coronavirus aid package.

American has been able to offset some involuntary cuts over the past few months by offering employees early retirements, buyouts & unpaid or partially paid leaves.

AAL is down over 54% year-to-to-date.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

American Airlines Group Inc. (AAL) - free report >>