American Airlines Group Inc (NASDAQ:AAL) Stock In Bearish Trend: Here is Why

The past two years have been quite tough for the aviation industry and yesterday, it was American Airlines Group Inc (NASDAQ:AAL) that came into sharp focus yesterday after it announced its financial results for the fourth fiscal quarter of 2021.

Trading Data

On Thursday, AAL stock fell 3.20% to $16.76 with more than 54.89 million shares, compared to its average volume of 36.31 million shares. The stock has moved within a range of $16.68 – 17.73 after opening trade at $17.63.      

Earnings Recap

The airline noted that it had performed fairly strongly in the fourth quarter and more importantly, the performance had been particularly strong in the holiday season when the Omicron variant of the COVID-19 virus had wreaked havoc on the travel industry. However, the stock did not perform well despite all that and ended the day with a decline of 3%.

That took the cumulative decline made by the stock over the course of the past week to as much as 10%. American Airlines noted that in the fourth quarter it had managed to bring in revenues to the tune of $9.43 billion and that reflected a decline of as much as 17% from the revenues generated in the same quarter in 2019.

While the decline from 2019 may be sharp, investors ought to keep in mind that the revenue generated in the fourth quarter is the biggest since the beginning of the coronavirus pandemic.

Technical Data

AAL stock is trading below the 20-Day and 50-Day Moving averages of $18.21 and $18.48 respectively. Moreover, the stock is trading below the 200-Day moving average of $20.47. The stock is down 3% in the past month.