The coronavirus pandemic had perhaps come as the biggest blow to the travel industry and in particular to the airline industry. However, countries are opening up again and there is the expectation that the airline industry is going to recover quickly during the course of 2021.
Hence, it might be a good move from investors to perhaps look into American Airline Group Inc (NASDAQ: AAL), which is regarded as the biggest airline in the world as per most of the standard parameters.
While investors might be tempted to get into the stock, it might be worthwhile to take a closer look. While it is true that the American Airlines stock has already delivered gains of as big as 40% so far this year, it is also true that the company is carrying massive amounts of debt. In the fourth quarter, revenues declined by 64% year on year and hit $4 billion. Moreover, margins have deteriorated as well and although the sector might recover, investors might consider staying on the sidelines at this point.
Writing for business and finance publishers has become his passion over the last decades after he completed a master’s degree in Financial Management. Sharing some opinions and forecasts to thousands of readers is a routine job for him but he never promises to invest in one stock.