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- 1 American Airlines Group Inc. (NASDAQ: AAL) pilots to receive a pay boost.
- 2 AAL stock price stopped declining and continued falling since the last quarterly earnings.
- 3 The American airline company stock price lost over 20% of its value within a month.
The airline industry is one of the most capital-intensive ones in the world. On top of that, the operations get affected if any unconventional instance surfaces. The pilot pay raise was one such issue for quite some time in the past which airline companies made efforts to resolve. American Airlines Group Inc. (NASDAQ: AAL) recently joined the clan after pilots brought the contract to increase pay. The downtrending AAL stock price for weeks saw an upswing following the news.
American Airlines Group Inc. (NASDAQ: AAL) recently joined the clan after pilots brought the contract to increase pay. The downtrending AAL stock price for weeks saw an upswing following the news.
The American Airlines pilot union agreed to a new four-year contract. According to the agreement, the pilot pay will be boosted by 21% immediately. In addition, since the contract also includes the provision of booking 401(k) retirement plan contributions, it is likely to increase the overall pay up to 46% in the coming four years. This will be a raise of over $9.6 Billion from the previous agreement.
In the past months, carriers have been facing difficulties for multiple reasons. Employee shortages, higher pay, and improved working conditions like demand from unions, etc. were creating pressure. The pilots of United Airlines Holdings (NASDAQ: UAL) and Delta Air Lines (NYSE: DAL) already agreed to pay rise conditions.
United pilots reportedly agreed to a 40% rise in pay over the next four years while Delta pilots reached consent for a 34% increase in a similar time period.
American Airlines (AAL) Stock Price Movement
AAL stock price closed the last intraday trading session on Monday, August 21, 2023, at $15.15 following a slight increase of 0.8%. During mid-July, the stock price attained a 52-week high at $19. But the downfall since then made it lose over 22%.
In a continued fall for over a month, AAL stock price dropped below the 50 and 200-day EMA. Currently, it is resting at the immediate support price level of $15.
American Airlines stock averted to break the support level, for now, following the two consistent upticks during the last trading sessions. However, a strong upside movement in the stock price is unlikely as major indicators suggest.
As mentioned earlier, the AAL stock price is already below the moving averages. RSI is at 34 and the potential downside momentum confirms that the trend reversal is difficult. The MACD curve is trading downwards and indicates similar possibilities.
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Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
