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American Airlines Group Inc.

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Shares of American Airlines have underperformed its industry so far this year. High fuel costs have been the primary reason behind this dismal performance. Also, the company trimmed its current-year earnings guidance due to the same reason. Oil prices have increased more than 10% on a year-to-date basis. Its high debt levels are added concerns. However, the company is benefiting from strong demand for air travel, which is evident from solid growth in passenger revenues. The carrier's performance with respect to unit revenues is also encouraging. American Airlines' efforts to upgrade its fleet and reward shareholders are impressive as well. Furthermore, we are optimistic about the company's decision to modify its Emotional support animal policy. This is because issues related to animals on flights have hurt airlines this year.

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