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Why is $AAL the Only Airline We Hold in the Portfolio?

Updated: Feb 7


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American Airlines Group Inc. is a holding company. The Company's primary business activity is the operation of a network air carrier, providing scheduled air transportation for passengers and cargo. The Company operates through the American segment, which provides air transportation for passengers and cargo. The Company's cargo division provides a range of freight and mail services with facilities and interline connections available across the globe. Together with its regional airline subsidiaries and third-party regional carriers operating as American Eagle, its airline operated an average of nearly 6,700 flights per day to nearly 350 destinations in more than 50 countries. (Source: Refinitiv)


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Long story short, the Market Cap of American Airlines is 10B. This is very low for one of the best brands in the world. Let's have a look at the below numbers to put the 10B valuation into perspective for all of us:


πŸ”ΉοΈRevenue of 24B

πŸ”ΉοΈBrand Value at 8.8B

πŸ”ΉοΈShort Interest at 25.23%

πŸ”ΉοΈCredit Combined score at 4.2%


Now let us think about valuation and American Airlines also vs $TSLA


Revenue of American Airlines as per eToro is 24B and Teslas is 28B. Consequently, we can say that they are almost equal. What is more, these 2 companies transport people as their main area of activity.


Now, do you really think that the dream of EV is more important than the reality and necessity of Air Travel? Ok, let us even agree that it is and that the New President - Biden - will make it even more so.

Well, American Airlines u