Economic fears shave US$4b off American Air’s market value
The growing pessimism about global economic growth has found an unlikely victim in American Airlines Group. The carrier lost nearly one third of its market value, or about US$4.3b, over the past 30 trading days through Tuesday, amid concerns about a widespread slowdown, as well as the company’s myriad labour and operational challenges. Growth in the airline industry is typically linked strongly to the economy, with the group usually moving in tandem with gross domestic product data. Apart from the macro concerns, the impact of the Boeing crisis and lingering protests in Hong Kong have also weighed on the carriers this year. “This represents American’s second such post-merger decline, coming 5 years after the Ebola ‘crisis,’” JPMorgan analyst Jamie Baker wrote in a note to clients, adding that the decline was surprising. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-08-29/oneworld/economic-fears-shave-us-4b-off-american-air2019s-market-value
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Economic fears shave US$4b off American Air’s market value
The growing pessimism about global economic growth has found an unlikely victim in American Airlines Group. The carrier lost nearly one third of its market value, or about US$4.3b, over the past 30 trading days through Tuesday, amid concerns about a widespread slowdown, as well as the company’s myriad labour and operational challenges. Growth in the airline industry is typically linked strongly to the economy, with the group usually moving in tandem with gross domestic product data. Apart from the macro concerns, the impact of the Boeing crisis and lingering protests in Hong Kong have also weighed on the carriers this year. “This represents American’s second such post-merger decline, coming 5 years after the Ebola ‘crisis,’” JPMorgan analyst Jamie Baker wrote in a note to clients, adding that the decline was surprising. <br/>
