Airline fares in the United States have seen corrections and witnessed a drop, given the decline in fuel prices. Stock prices of major airline companies surged following the news and  anticipation of an increase in air-travel demand. American Airlines Group Inc. (NASDAQ: AAL) stock price is moving upwards prior to the last three days’ continued declining streak. 

American Airlines reported to adjust the earnings per share (EPS) guidance prior to the second quarter earnings release on July 20, 2023. Earlier, the airline company expected its EPS to stay around $1.20 to $1.40, but recently, it increased from $1.45 to $1.65. 

Decreasing fuel prices and growing demand for air travel, despite the interest rate hike has made the airline company take a positive outlook for its EPS. 

The top line performance of American Airlines is very much dependent on air travel and the increasing demand is likely to boost. Since the revenue generated from the passengers is going to remain high, the overall revenue is likely to surge in the contingency. 

The AAL stock price is poised to take advantage of positive sentiment around the airline company as well as the overall sector. 

American Airlines (AAL) Stock Price Movement

The American Airlines share price traded at $18.14 after witnessing a slight drop of 1.68% during the intraday session on Friday, July 14, 2023. As mentioned earlier, the price dropped for three consecutive days. 

AAL stock price recently broke the earlier level of $18.12 before attaining the 52-week high of $19.08 attained on July 13. Yet ,the current trading price is over 11% high in a month. 

The airline stock has gained over 40% year-to-date and is nearly 25% higher than its price in the yearly time frame. 

Before making the up move to the current level, the AAL stock price took support at $13 in around May during the Q1 2023 earnings release. From there, the stock price gained about 40% of its value in less than three months. 

The MACD witnessed a positive crossover indicating mild bullishness in the AAL stock price. As RSI is beyond 75, showcasing the stock has entered the overbought zone, a slight retracement could be expected. 

Though major indicators show the up move, positive earnings are likely to push the already upward moving American Airlines stock price. The $11.84 Billion worth market cap company is expected to report $13.73 Billion in revenue and $1.58 EPS for Q2 2023. In the previous quarter, the company reported $12.19 billion revenue, a gross profit of $2.35 Billion and the EPS remained at $0.05.