American Airlines faces challenges on multiple fronts - and alternative data signals a change
The market is up, but American Airlines ($NASDAQ:AAL) shares are starting 2020 on a down note. Despite their earnings beat, analysts including Credit Suisse are marking its stock an "underperform," according to a research note dated Friday, January 24, saying the potential for lingering challenges thanks to Boeing's 737 MAX snafu could hurt the stock.
Credit Suisse analysts also highlight that "in addition to the MAX risk, there is also labor risk in the earnings outlook as AAL negotiates new contracts with multiple workgroups."
If unsurprisingly, job postings (shown above) are down 39% over the last 12 months as American remains in limbo, and on multiple fronts. The analysts also point out - rightly - that American Airlines recently stated it aimed to have 737 MAXs back in action in June, but that "US airlines will need to extend MAX cancellations a few months beyond June," which could also factor into declining hiring.
American Airlines - which pales in comparison next to peers in the Apple Store - is competitive with other airlines, shown above. How they're rating it, is equally important. Our final chart tracks American's rating within the Google Play Store over time. Here, American has some ground to gain, as well. Whereas American's digital offering via the Apple Store is barely even competitive with leading airlines, it continues to make progress in the Google Play store.
About the Data:
Thinknum tracks companies using the information they post online - jobs, social and web traffic, product sales, and app ratings - and creates data sets that measure factors like hiring, revenue, and foot traffic. Data sets may not be fully comprehensive (they only account for what is available on the web), but they can be used to gauge performance factors like staffing and sales.