Particle.news
Download on the App Store

American Airlines Slips Again as Oil Surge Deepens Fuel-Cost Hit

With no fuel hedges, the carrier is highly exposed to the latest fuel-price shock.

Overview

  • Shares fell 1.18% to $10.91 in pre-market trading Thursday, extending a slide that had the stock at $11.11 in early trade the prior day.
  • Brent crude topped $100 and WTI neared $95 Thursday, while industry reports this month put jet fuel as high as $150–$200 a barrel.
  • American carries no fuel hedges and estimates each additional penny per gallon adds about $50 million to its annual fuel bill.
  • TD Cowen cut its price target to $13 and Rothschild & Co downgraded the stock to Neutral with a $12.50 target, citing rising cost pressure.
  • On March 9 the company expanded revolving credit commitments to $3.11 billion and extended maturities to 2031, as the flight attendants’ union issued a no-confidence vote in CEO Robert Isom.