American Airlines (AAL) Flies 12% Higher on Lower Fuel Price, Airfare Jump

We recently published 10 Stocks on Euphoria. Are You Holding Any? American Airlines Group Inc. (NASDAQ:AAL) is one of the best-performing stocks on Tuesday.

American Airlines ended three consecutive days of losses on Tuesday, finishing 12.04 percent higher as investor optimism was fueled by a flurry of positive developments, including higher airfares and lower fuel expenses.

American Airlines Group Inc. (NASDAQ:AAL) rallied alongside its peers after the Labor Department announced on Tuesday that airfares rose by 4 percent last month following a 0.1 percent decline in June. Meanwhile, gas prices dropped by 1.9 percent and are now lower by 9 percent year-on-year.

The news bolstered optimism for higher revenues for the company, at least for the third quarter of the year.

In the second quarter alone, American Airlines Group Inc. (NASDAQ:AAL) reported a 16-percent decrease in net income at $599 million versus the $717 million in the same period last year. Operating revenues were flat at $14 billion.

Notably, fuel expenses in the said period were down by 13 percent year-on-year to $2.66 billion from $3.06 billion.

lukas-souza-5KRFOTnpnnY-unsplash

In the first half, American Airlines Group Inc. (NASDAQ:AAL) said net income fell by 69 percent to $126 million from $405 million in the same period last year, while total operating revenues were flat at $26.9 billion.