A resistance lines has formed in the chart of American Airlines Group (NASDAQ:AAL). If the stock breaks through, a breakout is expected. Read more to learn how to profit from this trade.American Airlines Group (AAL) is the world's largest airline by scheduled revenue passenger miles. The firm's major hubs include Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C. After completing a major fleet renewal, the company has the youngest fleet of U.S. legacy carriers.
The company has benefited with an improvement in air-travel demand in the United States. Delta cases of COVID-19 are falling, which helped the company see a 20% sequential improvement in third-quarter 2021 passenger revenues. AAL expects strong air-travel demand during the holidays in the fourth quarter.
As of the end of the third quarter, the company had $14.5 billion in cash compared to $2.6 billion in short-term debt. Over the past three years, AAL revenues have fallen an average of 17.6% per year. However, analysts expect sales to rise 125.8% year over year in the current quarter. This has led to a Growth Grade of B in our POWR Ratings system.