American Airlines on Thursday unveiled its airplane of the future , a new model Airbus A321XLR, heavy on premium seats and destined to fly both transcontinental and transatlantic routes, as the carrier toddles between its domestic focus and its international hopes.
Cruise stocks led the market higher Thursday, and shares of other travel companies also rallied, as the Fed's rate cut helped boost the prospects of consumer spending on vacations.
Spirit Aviation will transfer two airport gates to American Airlines for $30 million after a judge at the U.S. Bankruptcy Court for the Southern District of New York approved the company's request on Monday.
American Airlines continues to be rated a Buy with a $18–$20 price target, driven by debt reduction and Citi credit card revenue growth. AAL has reduced debt by over $6B in 2.5 years, saving $360M in total interest and targeting further $2B yearly repayments. Citi co-branded credit card revenue grew 7% YoY, potentially adding $250M to Net Income by next year at 30% pre-tax margins.
American Airlines filed a notice of appearance in Spirit Aviation bankruptcy proceedings and requested to receive all notices and papers served moving forward, according to a court filing.
Delta remains the leading U.S. carrier, but American thinks it move closer in financial metrics and passenger preference, top executives from the two carriers told investors on Wednesday.
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