Why American Airlines Stock Is Elevating Today

Image source: American Airlines Reading the tea leaves on Delta earnings First-quarter earnings painted a sobering picture of the airline industry

Carriers talked back expectations for the year due to concerns inflation and tariffs, leaving investors uncertain what was to come

On Thursday, Delta dered results that helped calm those nerves

The company beat expectations and, perhaps more importantly, reinstated full-year guidance with an earnings forecast ahead of the consensus estimate

Investors are assuming that others are seeing what Delta is seeing, sending s of American and other airlines higher

It appears demand is holding up well through the all-important summer vacation season, which should lift results for other airlines as well

Is American Airlines stock a buy

With airline stocks, quality matters

While the airline should have the wherewithal to cover that debt, it does leave the company more vulnerable to a potential downturn up ahead

Factoring in that debt, American and Delta have apximately the same enterprise value-to-earnings multiple

Given the volatility of the airline sector, Delta is ly a better choice for most investors

Lou Whiteman has no position in any of the stocks mentioned

The Motley Fool recommends Delta Air Lines

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